• Rate cut outlook: A rate cut appears distant for now, though potential rate reductions could be considered if inflation peaks in the September quarter and crude oil prices remain normalized.
• Broad-based credit growth: Loan demand is maintaining strong momentum with double-digit growth seen across corporate, personal, agriculture, and services sectors.
• Rate transmission and NIM: Rate cut transmission was largely completed by March, ensuring that bank Net Interest Margins (NIM) face no subsequent negative impact under current conditions.
• Deposits and liquidity: The divergence between deposit and credit growth reflects financialization in a developing economy, with SBI experiencing no liquidity strain due to excess SLR and steady systemic support.