Core Insights - The State Bank of India (SBI) is experiencing significant rate transmission in the banking system, with over 106 basis points on fresh deposits and about 22 basis points on overall deposits since February [1][10] - SBI anticipates a terminal repo rate of 5.25%, with a potential rate cut expected in December, as growth and inflation remain stable [10] - The traditional busy season is starting earlier this year, driven by recent GST rate cuts, leading to uniform traction across segments [2][10] - SBI is well-prepared for the RBI's Expected Credit Loss (ECL) framework implementation, having already factored its impact on growth and asset book [3][4][10] - The RBI's move to finance acquisitions is expected to enhance credit flows, addressing demand challenges as corporates hold significant cash [6][10] - The proposed risk-based deposit insurance premiums by the RBI are seen as beneficial for large banks like SBI, promoting sound risk management [8][10] - The current policy pause by the RBI is viewed positively, setting the stage for stronger business momentum for SBI ahead of the December review [9][10]
Pause gives banks breathing space, rate cut likely in December: SBI MD
The Economic Timesยท2025-10-01 09:36