Banking & Finance     

Published: July 15, 2026
Updated: July 15, 2026

State Bank of India

Predicts double-digit credit growth

SBI Chairman Challa Sreenivasulu Setty has retained a 13-15 per cent credit growth projection for FY 27, with the corporate credit pipeline being strong at Rs 5.50 lakh crore and likely demand for loans up at Rs 80,000 crore from MSMEs and the aviation sector under the government’s Emergency Credit Line Guarantee Scheme (ECLGC).

The board recently accorded approval for raising funds up to Rs 60,000 crore in rupees and/or any other convertible currency with the issue of debt instruments through the public offer or private placement mode to Indian and/or overseas investors during FY 27, subject to necessary approvals.

Highlighting a huge investment requirement going forward, Mr Setty said, “India will require an unprecedented scale of financing over the coming decades, with internal assessments pegging incremental investment requirements of nearly Rs 200 lakh crore by 2030 and Rs 450 lakh crore by 2047. These investments will be required across infrastructure, manufacturing, energy transition, urban development, MSMEs and innovation.”

The SBI chief opined that “though the journey to Viksit Bharat will be challenging, it will also be one of the most compelling growth stories of our time. India has already demonstrated how financial inclusion can be achieved at scale. The banking sector will be at the heart of the transformation, not merely as providers of credit but as mobilisers of savings, enablers of entrepreneurship, allocators of capital and partners in national development. And to make this happen, banks must evolve to support India’s aspirations. The future banking model must be built on key pillars, ensuring access to banking services across every segment of society and economy. As the country’s largest bank, we remain committed to supporting India’s growth aspirations.”

GLOBAL CHANGES

Mr Setty expanded further, saying, “The global economic order is being redesigned in real time, with supply chains shifting and manufacturing being reconfigured. Technology is redefining productivity. New growth centres are emerging. India enters this scenario from a position of strength. Green finance will become another defining opportunity.”

Commenting on the emerging, encouraging scenario in the wealth management domain, he said, “We are seeing significant opportunities in strengthening our wealth management franchise, expanding relationship-led advisory services and leveraging technology-enabled engagement models to deepen customer relationships across segments.”

Sharing his vision for the bank, he said, “Our strategic priorities will remain firmly centred around strengthening our ‘Digital First, Customer First’ approach. The bank will continue investing in technology, data analytics, artificial intelligence, cybersecurity and digital infrastructure to create a more intelligent, agile and responsive banking ecosystem.”

SUBSIDIARY VALUE

Mr Setty highlighted the massive value creation of the bank’s 18 non-banking subsidiaries and joint ventures. An initial aggregate investment of about Rs 6,000 crore has grown to a massive estimated valuation of Rs 3 trillion for the bank’s holdings.

The diverse subsidiaries – spanning insurance, asset management and financial services – are a significant source of underlying value. The bank has become active in unlocking this value through capital markets. He confirmed the filing of the DRHP for the IPO of the SBI Funds Management arm. The OFS is expected to divest a 10% stake – around 6.3% by SBI and 3.7% by Amundi – to raise approximately Rs 13,000 crore. He stated that “SBI General Insurance is another strong candidate being prepared for a public listing.”

During FY 26, the bank’s total business surpassed Rs 109 trillion. On a Y-o-Y basis, total deposits grew 11.03% to Rs 59.75 trillion and advances grew 16.87% to Rs 49.32 trillion, with double-digit growth in the SME (20.99%) and Agri (19.68%) portfolios. The CASA ratio has been maintained at 39.46%, whereas gross and net NPAs improved to 1.49% and 0.29% respectively. The Capital Adequacy Ratio (CRAR) stood at 15.40%. Operating profit and net profit showed improvement at Rs 1,23,015 crore and Rs 80,032 crore (up 12.88%).

STURDY STOCK

The bank declared a dividend of Rs 17.35 per share of Re 1 face value. The RoA and RoE stand at 1.12% and 18.57%, with NIM at 2.81%. The provision coverage ratio is at 74.36%, while PCR (including AUCA) stands at 91.97%. On an equity share capital of Rs 923 crore, it reported an EPS of Rs 87.90 and has a book value of Rs 616.20 per share. Currently, the stock is being quoted at Rs 1,037, with a yearly high-low of Rs 1,235 and Rs 787 and market capitalisation of Rs 9,56,845 crore.

Mr Setty urged investors to look at SBI with a different perspective and reiterated that the group’s subsidiaries and JVs are closely tied to India’s long-term, structural growth story and continue to expand capabilities in complex areas like transition financing.

Needless to add, investors with patience can certainly grow their portfolio decently by investing in this true ‘Banker to the Nation’.