State Bank of India is confident of achieving its 3 per cent net interest margin guidance even if the Reserve Bank decides to cut the repo rate by 0.25 per cent in next week’s monetary policy review, Chairman C S Setty said.
In an interview with PTI, the SBI chairman said that the RBI decision next Friday will be a “close call” and added that the house view at SBI is pointing towards a shallow cut of 0.25 per cent.
“…if December rate cut is there, but our house view again is that it would be a shallow rate cut of 0.25 per cent, so it may not have any significant impact on the margins,” he said.
Earlier this month, before the release of official data pointing to inflation cooling to the lowest ever rate of 0.29 per cent in October, SBI had opined that RBI will opt for a pause in December and cut the interest rate in February.
Earlier this week, RBI Governor Sanjay Malhotra said that there is a space for a rate cut and it was mentioned in the last bimonthly policy in October.
The​State Bank of India is confident of achieving its 3 per cent net interest margin guidance even if the Reserve Bank decides to cut the repo rate by 0.25 per cent in next week’s monetary policy review, Chairman C S Setty said.
In an interview with PTI, the SBI chairman said that the RBI decision next Friday will be a “close call” and added that the house view at SBI is pointing towards a shallow cut of 0.25 per cent.
“…if December rate cut is there, but our house view again is that it would be a shallow rate cut of 0.25 per cent, so it may not have any significant impact on the margins,” he said.
Earlier this month, before the release of official data pointing to inflation cooling to the lowest ever rate of 0.29 per cent in October, SBI had opined that RBI will opt for a pause in December and cut the interest rate in February.
Earlier this week, RBI Governor Sanjay Malhotra said that there is a space for a rate cut and it was mentioned in the last bimonthly policy in October.
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