Retaining Guidance
No tweak in FY26 loan growth view even as GST rationalisation may spur demand, says SBI MD
This story was originally published at 14:33 IST on 4 September 2025
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By Kabir Sharma
MUMBAI – The GST Council's move to rationalise goods and services tax is expected to spur demand for auto and consumption loans, but State Bank of India will stick to its current loan growth guidance of 12% for 2025-26 (Apr-Mar) and not revise it at the moment, Managing Director Ashwini Kumar Tewari told Informist. "No, we are not changing it, and continue to maintain the same guidance," Tewari said.
The GST Council at its 56th meeting decided to cut GST to 18% from 28% on air-conditioners, all televisions, and dishwashing machines, which is expected to boost consumption loans. Among the big ticket rate changes decided by the GST Council Wednesday, reducing GST from 28% to 18% on small cars and motorcycles equal to or below 350cc, is also expected to support demand for vehicle loans.
SBI, which saw its corporate advances growth at just 5.7% on year in the June quarter, expects growth in corporate loans to rise to around 10% by the December quarter, Chairman C.S. Setty had said in a press conference after the earnings. Setty said corporate loan growth slowed down in the June quarter because companies shifted to market instruments including the corporate debt market.
SBI retained it total credit growth guidance for FY26 at 12% and deposit growth guidance at 10%. The bank's total advances were INR 42.55 trillion as of Jun. 30, up 11.6% on year. Deposits rose 11.7% on year to INR 54.73 trillion at the end of June. The bank reported a net profit of INR 191.60 billion for the June quarter, up 12.5% on year and 2.8% sequentially.
At 1345 IST, shares of the bank traded 0.2% lower at INR 810.35 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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