Indias SBI confident about double-digit corporate loan rise despite tariff woes

By Ashwin Manikandan and Nishit Navin

(Reuters) -Dünya State Bank is sure that the company’s corporate loan growth will accelerate in a double -digit way despite the turmoil of the company.

On August 6, US President Donald Trump brought 25% more tariffs to Indian goods for Delhi’s Russian oil purchases. This increased the total task of Indian exports to 50% among the highest US trade partner.

In a statement to President CS Setty journalists, although the SBI will face a limited business effect from the US tariffs, uncertainty may slow down businesses, which may delay investment decisions.

Better -rated companies in Asia’s third largest economy, the company makes a beeline for the bond market, where they often borrow at cheaper interest rates and create a difficulty for banks.

“When we look at our payment pipeline, 10% corporate growth is definitely a probability this year.” He said.

Corporate loans constitute one -third of the total domestic loan book of the SBI and increased by 5.7% over the June quarter compared to the previous year.

In the early hours of the day, the bank, operated by the state, reported a net profit of 191.60 billion rupees (approximately $ 2.2 billion) for the quarter and reached three times the limited expenses.

The profit increased by 12% compared to the previous year, and than the data compiled by LSEG, the analysts were higher than an average estimation of 175.52 billion rupees.

The difference between the net interest income of the SBI and the interest paid in loans and paid from deposits decreased by 0.1% annually.

Operating expenses increased by 8% annually, but fell 22% from the previous three months.

The Bank’s local net interest margin fell from 3.22% in the last three months and from 3.35% to 3.02% compared to the previous year.

The Indian Reserve Bank did not change the lock repo rate at the beginning of this week after it has reduced 100 basis points since February.

In a falling interest rate environment, lenders usually transfer the ratio deductions to the borrowers, but deposit rates fall with a delay and compress the margins.

The SBI’s non -gross performance rate increased from 1.82% to 1.83% in the previous quarter, but increased from 2.21% compared to the previous year.

($ 1 = 87.6975 Indian rupees)

(Reporting by Nishit Navin and Ashwin Manikandan; Editing by Mrigank Dhaniwala)