Archive · 21 Aug 2026
SBI Chief Sees Sustained Consumption and Major Banking Shifts
C S Setty, the head of SBI, says people are likely to keep spending this year.
He says SBI and other banks began FY27 strongly, with SBI’s loans growing by almost 18%.
Banks currently use deposits from households and companies to provide loans.
In the future, banks may also raise more money from investors and use tools such as securitisation.
SBI is preparing to finance newer areas such as data centres and artificial intelligence.
It is also lending more to retail customers, farmers and small businesses.
Setty says SBI has enough capital and extra government securities to support growth.
He expects the Reserve Bank of India to watch the economy and keep interest rates steady for now.
He also says business investment and company finances are showing signs of improvement.
State Bank of India Chairman C S Setty expects consumption demand and retail activity to remain strong through FY27.
Setty forecasts a structural shift toward market borrowings, securitisation and longer-term funding as credit growth continues.
SBI has completed four M&A financing transactions worth about Rs 11,000 crore and has another Rs 15,000 crore pipeline.
SBI’s retail, agriculture and MSME loans now account for 67% of its loan book, with MSME credit growth near 20%.
Setty expects the Reserve Bank of India to keep rates steady for now, citing current inflation and growth conditions.
- Who
- State Bank of India Chairman C S Setty discussed the bank’s outlook and strategy.
- What
- Setty said consumption demand, credit growth and retail lending should remain strong, while banks prepare for broader funding sources and new lending sectors.
- When
- The outlook concerns FY27 and the next five to 10 years; Setty took charge of SBI in August 2024.
- Where
- The developments concern State Bank of India and India’s banking and financial system.
- Why
- Strong economic activity and rising financing needs are expected to support credit demand, while banks need alternatives to deposit-only funding.
- SBI credit growth
- Almost 18% across sectors at the start of FY27.
- SBI deposit base
- About Rs 60 lakh crore, with 60% held in fixed deposits.
- Excess SLR
- More than Rs 4 lakh crore.
- M&A financing
- Four completed transactions worth around Rs 11,000 crore, with a further Rs 15,000 crore pipeline.
- Loan-book mix
- Retail accounts for 67% and corporate lending 33%, compared with a 60% retail and 40% corporate mix in 2015-16.
- MSME lending
- SBI deploys more than 2,000 dedicated MSME personnel, while MSME credit growth is around 20%.
- Capital targets
- SBI aims to maintain CET1 capital of 12% and CRAR of 15% through economic cycles.
- Expected interest-rate stance
- Setty expects the Reserve Bank of India to remain watchful and keep rates steady for the time being.