World · India Bureau
SBI set for double-digit NII growth in Q2 amid margin stability
State Bank of India is expected to log 11-13 per cent year-on-year growth in net interest income during the second quarter, with analysts projecting stable margins aided by moderating foreign currency deposits.
LSN India ·
Analysts tracking State Bank of India's second-quarter performance anticipate the country's largest lender will deliver double-digit expansion in net interest income, driven by steady loan growth and contained deposit repricing pressures.
Consensus estimates peg SBI's NII growth in the 11-13 per cent range on a year-on-year basis, reflecting the benefits of its expanded credit portfolio and the impact of the Reserve Bank's policy rate cycle.
Margin stability is expected to remain intact, with strategists noting that inflows into foreign currency non-resident (FCNR) deposits are likely to moderate, reducing pressure on the bank's net interest margin. This normalization in foreign currency funding costs should support margin retention even as domestic deposit competition persists.
However, views diverge among analysts regarding SBI's overall profit trajectory for the quarter. While NII expansion appears broadly assured, the impact of credit costs, treasury performance, and other income streams presents a mixed picture, leaving observers cautiously positioned ahead of results.
The quarterly performance will offer crucial insights into how India's banking sector is navigating the current interest rate environment and the structural shifts in deposit mobilization patterns.