<ul><li>State Bank of India and Bank of Baroda have observed a decline in their Net Interest Margins (NIMs) in the financial year 2025.</li><li>Despite repo rate cuts, the cost of deposits remains relatively high, affecting NIM.</li><li>Banks have seen an increase in EBLR-linked loans and a decrease in MCLR-linked loans, impacting profitability.</li><li>To protect NIM, banks are shifting focus from low-yield advances and high-cost bulk deposits, opting for retail term deposits and savings mobilization.</li></ul>

To protect NIM, State-owned banks letting go low-yield advances and high-cost bulk deposits

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