The banking behemoth, the State Bank of India expects to improve its asset quality in the current fiscal. But the bank faces a tough task ahead, since it doesn't have any big recovery or upgrade like the last quarter of FY11-12.
SBI hopes to grow its loan book by 15-16%, and also hopes the deposits to grow by same number. The slowdown in infrastructure loans is supposed to be off-set by the credit demand in priority and retail sector.
The lender also hopes to maintain its net interest margins (NIM) at current level, unless there is a rate cut, which might cause a fall of 10-15 basis points. The bank has a restructuring plan of Rs. 3500-4000 crore in the next half year.
The international loan book for the bank is also stable, since the borrowers have direct or indirect currency hedge. There might be a decline in growth of disbursals because of high cost of borrowing.