SBI Q1 Largely In-Line With Estimates, CS Setty Speaks On The Growth Outlook
📅 Aug 08, 2025CNBC-TV188 MIN676 VIEWS34 SEGMENTS · 2 SPEAKERS
State Bank of India’s Q1 results were largely in-line with expectations, with the lender reporting a one-time gain from interest on a tax refund. SBI Chairman, CS Setty said the bank should be able to maintain its net interest margin at around 3%, though a U-shaped recovery is expected, with a slight dip in Q1 and Q2.
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Questions asked in this interview
5
0:06Do you expect this fiscal to be better than the previous?
2:20So in summary, will this fiscal year turn out to be better than the previous?
2:59... to get to double digits sometime in this fiscal on the corporate book, especially when you're noticing this trend of corporates now going to the markets for fundraising, utilizing other sources, you know, what gives you the confidence?
5:23So therefore, margins which have shrunk in the quarter, what sort of headroom do you see for further improvement, especially if RBI maybe brings down rates further sometime in the future?
6:50And other pockets of stress that lenders have been highlighting, whether that is MSME, MFI, is there something you'd like to point out as well?
Mr. Seti, thank you very much for speaking to CNBC TV8. Let me just start with a broader picture on your numbers for the quarter. Profitability, sure, higher than what the street was factoring, but it's because of other higher income. Your core income has remained more or less flat here, if not slightly lower. How is the macro environment shaping up with everything that's going on globally and in India? Do you expect this fiscal to be better than the previous?
First of all, let me thank you for giving this opportunity. On the core income side, I think we need to look at it with a slight different perspective. We had a one-time gain on interest on tax refund earlier, of course, which is not there. If you adjust that, yes, you're right. I think we maintain the NI at that level. But this is despite, you know, 30 to 40% of the book getting repriced immediately by 100 basis points and also the large fixed deposit book we have. So I believe that we have done fairly well on the NI front.
And on the margin side, I think we still protected our margins and I'm sure through the cycle, through the year, we will be able to maintain that 3% advisory. In terms of the uncertainties, I think the tariffs may not more than the direct impact of the tariffs. I think the uncertainty surrounding the tariff narrative is something that is slightly a matter of concern, obviously that needs to be addressed. From a bank asset quality or credit growth perspective, it may not have a larger impact because one is the export basket of India is widespread.
I'm sure that I think there they seem to be closer to many of the uncertainties and the global political tensions. The tariffs are not unique to India, right, it's not localized to India, it's impacting many other countries. So all almost all the countries are coming to grips with the tariffs, which gives an impression or confidence that many of the corporates which are looking at whether to take an investment decision, and not to take, I think we'll come around and move on.
Well sir, your loan growth, 11.6% right now year-on-year growth that you've seen. The corporate book though, you know, sequentially it has slowed down over the previous year. It's in single digit growth. When you know what gives you the confidence that you'll be able to get to double digits sometime in this fiscal on the corporate book, especially when you're noticing this trend of corporates now going to the markets for fundraising, utilizing other sources, you know, what gives you the confidence?
The confidence mainly coming from the fact that we have a very robust pipeline. In fact, the pipeline has increased over the last year. Today we have almost 7.2 lakh crore visibility of the corporate book, both in terms of the sanctioned loans but not disbursed, and also the pipeline of proposals under discussion. That is one part.
Number two, the dip you see in Q1 is essentially because whenever the interest rate reduction is happening, a lot of corporates come for renegotiation on pricing. Sometimes it is not acceptable to us, so we let go of them. Some prepayments definitely happened. There were almost 12,000 crores worth of corporate loans that got prepaid. Because we were not able to match the pricing. We thought that probably the pricing is too low. The second point you mentioned in terms of corporate accessing the market. Yes, that is also one of the reasons why working capital utilization particularly has come down because they have accessed the CP market and CP rates are very low when compared to the bank loans. But bank MCLR loans are getting repriced, right? MCLR will get readjusted.
Setty, C. (2025, August 8). SBI Q1 Largely In-Line With Estimates, CS Setty Speaks On The Growth Outlook [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/1115657/
MLA
Challa Setty. "SBI Q1 Largely In-Line With Estimates, CS Setty Speaks On The Growth Outlook." CNBC-TV18, 8 Aug. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1115657/.
BibTeX
@misc{setty2025_1115657,
author = {Challa Setty},
title = {SBI Q1 Largely In-Line With Estimates, CS Setty Speaks On The Growth Outlook},
howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
year = {2025},
month = {aug},
url = {https://ceointerviews.ai/interview/1115657/},
note = {Speaker-attributed transcript with timestamps}
}
