SBI targets net interest margin above 3 percent by doubling down on retail and MSME loans

CASA deposits may lag, forcing SBI toward pricier funding

State Bank of India is aiming to keep its net interest margin above 3% in FY27, banking on easing funding costs as deposits are repriced. But if CASA growth stays slower than credit expansion, SBI may have to rely more on costlier term deposits. To protect margins, it plans faster retail and MSME loan growth while strengthening fee income.