SBI Will Ensure RoA Over 1% in FY26 Despite Margin Pressure

There would be further repo rate cuts during the year that would put pressure on net interest margin, SBI Chairman C S Setty said

- OUR CORRESPONDENT

NEW DELHI: The State Bank of India (SBI) will ensure return on assets (RoA) of over 1 per cent during the current financial year despite the challenge of declining rate cycle, the bank's Chairman C S Setty said.

RoA is a profitability ratio that shows how much profit a company would generate from its assets.

There would be further repo rate cuts during the year that would put pressure on net interest margin, he said, adding that there would be realignment of rates on the deposit side because without that effective monetary transmission will not happen.

"We will ensure that the readjustment of interest rates on the deposits are aligned broadly with repo rate cuts so that margins are protected," he said while addressing analysts after announcing the SBI's quarterly numbers.

"We still will be able to maintain 1 per cent RoA guidance for the current financial year... our goal is to consistently achieve an RoE of over 15 per cent through the business cycles," he said.