SBI eyes Rs14,000-15,000-crore net profit this fiscal
04 March 2013
State Bank of India (SBI) expects to close the current financial year (2012-13) with a net profit of Rs14,000-15,000 crore, on the back of strong loan flows.
SBI, the country's largest lender, had recently raised fixed deposit rates for select maturities by 25 basis points in a bid to mop up more funds against a general industry-wide shortage of funds.
On the other hand, SBI had cut lending rate by 0.05 per cent on 30 January, a day after the Reserve Bank cut its key policy rates. SBI further reduced its base rate or the minimum rate of lending, to 9.70 per cent from 9.75 per cent effective 4 February.
In an interview with CNBC TV 18, SBI chairman Pratip Chaudhuri said the bank has been rationalising its retail lending rates over the past few months.
However, he said the recent hike in deposit rates is unlikely to dent SBI's net interest margin (NIM).
SBI now expects some momentum in its loan expansion by the end of the current quarter (January-March 2013).