State Bank of India (SBI) will make a representation to Moody’s, which had downgraded it last year, to revise the bank’s credit rating now with SBI posting a record net profit ever in fiscal 2011-12 at Rs 11,707 crore.
“Our Tier-I capital ratio (core capital) is now 9.67 per cent. With our core equity position comfortable and plenty of cash in hand, we will soon approach Moody’s to reassess the bank’s credit rating,” Chaudhuri said.
Though SBI could have approached Moody’s even earlier “credit rating agencies do not give much credence to promises; they want to see hard cash in hand,” quipped Chaudhuri.
Ruling out any softening in SBI’s home loan interest rate, Chaudhuri said a significant cut in interest rates for SME sector was in the offing.
SBI was not stressed for capital and profitability is expected to be good.He said interest margins available at April end are very robust.
SBI has already given a guidance that NIM, which was 3.85 per cent last year, would be a minimum 3.75 in the first quarter.