SBI Sees Little Effect From Trump Tariffs

SBI clocks 12.5% profit jump, but sees slowing corp loan growth

- Shayan Ghosh

India's largest lender State Bank of India (SBI) sees limited impact on its books from stiff US tariffs, as it hopes the issue gets resolved soon enough to rekindle corporate capital expenditure plans.

"Our assessment is that while the direct impact on the sectors and industries may be limited, the sooner this issue gets resolved, the better," chairman C.S. Setty told reporters after declaring the bank's June quarter earnings. SBI's net profit rose 12.5% during the quarter, comfortably beating market estimates.

He said the banking sector in general, and SBI in particular, does not have significant exposure to sectors that rely on US exports. However, one also has to look at the uncertainty around how these tariffs are going to play out and how quickly it is going to be addressed, he said.

"The global macroeconomic environment has remained fluid since June till now amid geopolitical tensions and tariff policy uncertainties that have increased," said Setty.

US President Donald Trump has imposed a total of 50% tariff on Indian goods shipped to the US, with textiles and auto components among sectors likely to be affected the most.