Double digit growth in profits in Apr-Jun: SBI

"We don't take short-term view on interest rates, but there is definitely an under current of upward bias on interest rates... There is pressure on margin but we will maintain Net Interest Margin to be around 3 per cent for this fiscal," SBI Chairman O P Bhatt told reporters here.     

However, there is no proposal at present to tinker with the interest rates, he said.      Demand for loans for some sectors like commercial real estate and auto has slowed down, but there is no impact on other sectors including homes loans and medium and large corporates loans, he added.     

 

Last month SBI increased lending rate by 50 basis points to 12.75 per cent and deposit rates were increased by 75 basis points.     

On the bottom line, Bhatt said profit growth in April- June quarter is likely to be double digits.     

SBI NIM stood at 3.07 per cent for the year ended March 2008.     

SBI net profit for the quarter ended March 31, 2008 stood at Rs 1,883.25 crore, a growth of 26.12 per cent over the corresponding period last year.