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Informist, Tuesday, Nov. 4, 2025

 

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--SBI Setty: Retain guidance of 3% or more for NIM in FY26 
--CONTEXT: Comments by SBI mgmt in post Jul-Sept earnings press conference 
--SBI Setty: Aim for credit growth of 12-14% in FY26 
--SBI Setty: Corporate credit growth in Oct-Mar should be in double digits 
--SBI Setty: Saw phenomenal pick-up in auto loans post GST cut 
--SBI Setty: Aim for double-digit deposit growth in FY26 
--SBI Setty: Aim to grow to 25% of India's GDP 
--SBI Setty: YES Bank stake sale very satisfactory for us 
--SBI Setty: Currently have corporate credit pipeline of INR 7.06 tln 
--SBI Setty: Held excess SLR worth INR 3.5 tln as on Sept 30 
--SBI Setty: Don't see a rate cut by RBI until March 
--SBI Setty: Aim to launch new version of YONO app in Q3

 

MUMBAI – Corporate credit growth for the largest bank in the country, the State Bank of India, should reach double digits in the second half of the year, Chairman C.S. Setty said in a post-earnings press conference here on Tuesday. "So far given the current quarter, we have seen the sustained credit demand in the pipeline is getting either depleted faster or not there at all. So, this gives us confidence that double-digit credit growth, both for us as well as for the system is quite possible," Setty said. 

 

In the September quarter, SBI's credit to the corporate sector grew by 7.1% on year, while loans to small and medium enterprises, agriculture and retail grew by 18.8%, 14.2% and 14.1% year-on-year, respectively. Currently, the bank has INR 7.06 trillion of corporate loans in the pipeline, half of which have been sanctioned and the other half have been disbursed, the bank said. 

 

The gross advances of India's largest lender grew at a quicker pace than the banking industry at INR 44.20 trillion, up 12.7% on year. Comparable RBI data showed the industry's loans were up 11.4% on year as of Oct. 3. The total business of the bank surpassed INR 100 trillion in the quarter ended September, amounting to approximately 20% of India's GDP, Setty said. However, the bank aims to grow to 25% of the country's GDP in the coming years and also enter the list of the top 10 banks in the world in terms of assets, he said. Currently, SBI is the 43rd largest bank in the world in terms of assets. 

 

In terms of overall credit growth, the bank aims for 12-14% growth by the end of the current financial year, Setty said. The bank revised the upper band of its credit growth target upward by 1% as it expects the cut in goods and services tax to provide a fillip to loan growth, Setty said. Based on many enablers which RBI (Reserve Bank of India) has given and also the fiscal measures in terms of the GST 2.0, we believe that there will be sustained consumption demand, which gives an opportunity for us...so, we are revising our credit guidance to 12 to 14%," Setty said. 

 

The bank also saw phenomenal demand for auto loans post the implementation of the GST cut, Setty said. The demand for loans was across car segments and so huge that the bank gained significant market share in just one week after the GST cut came in effect in September, Setty said.

 

When asked about the capital raising plans of the bank to fund the credit growth, Setty said that the bank remains well capitalised, but they will tap the bond market as and when required. However, the bank holds excess government bonds worth INR 3.5 trillion which it can also liquidate to fund credit growth. "...liquidity has never been a problem for us. As far as capital is concerned, the current capital ratios and also the next half year profit gives us the ability to fund almost INR 12 trillion credit growth. I do not think there is any problem...either on the capital side or on the liquidity side," Setty said. 

 

The estimates for loan growth were based on the assumption that RBI will not cut rates until March, Setty said. "So our optimism also stems from the fact that our house view is that we may not have the rate cut in months. If it is, you know, front loaded in December, yes, we may have to review our credit growth expectations," he said. 

 

Setty also said that the bank will be able to sustain its net interest margin above the 3% mark until the end of the current financial year. In Jul-Sept, the bank's domestic net interest margin was 3.09% against 3.02% in the June quarter and 3.27% in the year-ago period. "I believe that we have outperformed the expectation on the margins. Our guidance was that there will be a U-shaped curve and we are sticking to that. I said that from Q3 onwards, it will move up, but we were able to contain our cost of resources and we have advanced to that moment," Setty said. 

 

The chairman said he is very satisfied with the stake sale in YES Bank. The bank had a gain of INR 45.93 billion which resulted in a post tax addition of INR 38.68 billion to the bank's bottom line, Setty said. The sale generated a pre-tax return of 14% for the bank, Setty said. "I think more than the IRR (internal rate of return), we are quite happy that we were part of the restructuring. The conclusion is that you bring a strategic partner to run that bank and to that extent, it is extremely satisfying for us more than the IRR. We have not gone there for making any profit. I think it was important for us to ensure that the system-level important bank is rescued and reconstructed and thrived", Setty said. 

 

The country's largest lender reported a net profit of INR 201.60 billion, including an exceptional gain of INR 45.93 billion from the YES Bank stake sale. SBI sold its 13.18% stake in YES Bank to Sumitomo Mitsui Banking Corp. for INR 88.89 billion, which resulted in a one-time profit, the bank said in notes to its accounts. The bottom line was up 10% on year and 5.2% on quarter.

 

Talking about the launch of the long-awaited new version of the bank's YONO application, Setty said that it will be launched in the December quarter. Setty also said that the bank aims to double the amount of digital users of its services to 200 million in the coming years. Tuesday, SBI's shares closed 0.8% higher at INR 957.60 on the National Stock Exchange Tuesday.  End

 

Reported by Kabir Sharma

Edited by Deepshikha Bhardwaj

 

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