SBI posts record ₹80,000 crore profit; chairman says NIM has bottomed out, eyes 13–15% loan growth in FY27

State Bank of India reported its highest-ever annual net profit, crossing ₹80,000 crore — but investors had questions. Markets zeroed in on two numbers that slipped: net interest income (NII) and net interest margin (NIM). SBI Chairman CS Setty addressed both head-on in an interview with ET Now, and his message was clear: the worst is over.

NIMs have hit the floor and Chairman Setty is confident they hold at 3%

SBI's NIM came in at exactly 3% for Q4 FY25 — matching the bank's own guidance. Setty confirmed that FY27 guidance also stands at 3% and above, pushing back on concerns that margins could slip further.
The NIM pressure this quarter had a specific cause. The RBI's 25 basis point rate cut from December was fully absorbed in Q4, hitting the bank's External Benchmark Lending Rate (EBLR) book hard. Home loans and MSME loans are mandatorily linked to EBLR, so when the repo rate falls, these loan yields fall automatically — and that book has been growing.


"The double impact is one is the 25 basis point rate cut which has fully factored in December and the EBLR book itself has grown," Setty explained.

But with no further rate cuts expected in the near term, Setty said margins should stabilise. "There are no rate cuts expected, which means the EBLR book will hold at this level," he said, adding that better asset mix management and strong fee income from corporate relationships would support overall returns. Return on assets stayed above 1% — in line with guidance.

Deposits grew 11.4%, and SBI is sitting on a cushion

On the funding side, SBI delivered what Setty called a standout performance. Total deposits grew 11.4% on a base that is already the largest in India. Retail term deposits surged nearly 15%, and savings bank deposits recorded double-digit growth for the first time in years.

The bank is targeting 11–12% deposit growth in FY27. Crucially, SBI holds nearly ₹3 lakh crore in excess SLR (statutory liquidity ratio) securities — a buffer that gives it significant room to fund credit growth without scrambling for deposits.

Loan growth guidance: 13–15%, built across all segments

SBI clocked 16–17% loan growth in FY25 — an impressive run. For FY27, Setty guided for 13–15% credit growth, which he described as realistic and broad-based, not dependent on any single segment.

Corporate credit grew around 15% in FY25, supported partly by companies switching from capital markets to bank borrowings as market rates stayed elevated. Setty said the corporate capex pipeline remains intact at roughly ₹5 trillion, with no client having withdrawn committed investment plans.

"Thirteen to fourteen percent corporate credit growth is imminently feasible," he said.

Early signals from April are encouraging, with Setty noting that the robust momentum seen in FY25 appears to be carrying into the new financial year.

Global risks are on the radar, but no stress visible yet

Setty acknowledged that the ongoing West Asian conflict and global trade uncertainty are factors the bank is watching. He noted that rising fuel costs and production costs could gradually weigh on borrower health. However, he was measured rather than alarmed.

"The impact is widespread but not intense," he said. "At this juncture we have not seen any stress in our book — but it depends on how long it goes on."