SBI Likely To Review Exposures To US Tariff-Affected Sectors

As uncertainty grows on the US reciprocal tariff impact on India, State Bank of India is planning to review its exposures on certain sectors affected by it, two sources aware of the development told NDTV Profit.

The bank will assess the US reciprocal tariff impact on information technology services, textiles, steel, cement and the automobile sector, the people quoted above said.

The bank will assess the impact of these tariffs, as it could affect the profitability of these companies. The bank will first assess the impact in the April-June quarter and then take a clear call, the first of the two people quoted above said.

While the bank will review further lending, SBI has limited exposure to such sectors, the first person said. As of December 2024, SBI’s total outstanding domestic advances were Rs 34.56 lakh crore.

Among sectors, home loans have the largest share, accounting for Rs 7.92 lakh crore of the bank’s total advances, followed by services at Rs 4.82 lakh crore and infrastructure at Rs 3.89 lakh crore.

Other sectors impacted by the tariffs, such as auto loans, were Rs 1.24 lakh crore of the bank’s total loan book and textiles formed Rs 38,914 crore at the end of the December quarter.

An email sent to SBI was unanswered at the time of filing this story.

While the bank will assess these impacts, another official said that US tariffs are not the only lending decision factor for banks to extend loans.

This has come at a time when corporate credit growth in India is already witnessing a slowdown, experts believe.

"While it is too early to comment on this, as there would be certain bilateral trade agreements and tariffs imposed on India are not as high as compared to other countries, but banks would want to take stock of the situation before they go aggressive on corporate lending," Karthik Srinivasan, group head of financial sector ratings at ICRA, said.

On Thursday, US President Donald Trump announced a 26% tariff on Indian imports, citing the country's higher tariff rates on US goods.