SBI Chairman Challa Srinivasulu Setty said the next two-three quarters should be beneficial for banks' margins following the rate hike

Sat 10 Oct 2026

Expected terminal repo rate scenario

6 percent

Heard on business television between 10:49:55 - 10:52:55 IST.

• Setty said loan books are roughly split between MCLR and EBLR, with EBLR slightly higher industry-wide, meaning repo hikes quickly reprice EBLR loans.
• He said deposit rates are unlikely to rise significantly in the next couple of quarters due to sufficient liquidity and low deposit competition.
• He agreed the next two to three quarters are beneficial in terms of the repo hike for banks.
• He noted markets are now veering towards expectations of three rate hikes instead of two, moving towards a 6% scenario.

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