SBI receives $10.9 billion forex boost but MCLR remains locked
SBI just got a big boost in foreign exchange deposits, $10.9 billion, part of India's massive $136 billion inflow.
Still, SBI Chairman CS Setty says lending rates aren't dropping anytime soon.
The reason? Current deposit rates are keeping the Marginal Cost of Funds-Based Lending Rate (MCLR), basically the minimum interest banks can charge, locked in place.
SBI aims 14-15% credit growth
Even with all that extra cash, borrowers shouldn't expect relief right away. Demand for loans is strong, especially from sectors like renewable energy and data centers.
SBI is aiming for 14-15% credit growth in the current financial year after seeing a solid jump in advances recently, but its net interest margin was earlier guided at 3% for the full year ending March 2027.
Setty expects these forex funds will be used up within four to five months without squeezing the margin.