Triumphant Ambitions: SBI Chairman Commits to Bold 14-16% Credit Growth Target for FY2025
State Bank of India (SBI) Chairman C S Setty has expressed confidence in maintaining a credit growth rate of 14-16% for the current financial year, primarily fueled by strong performance in corporate and retail loans. In the December 2024 quarter, SBI’s net profit surged 84% to ₹16,891 crore from ₹9,164 crore in the same period last year. Setty emphasized the bank’s robust visibility on corporate loan pipelines, totaling ₹4.83 lakh crore, and a positive outlook in retail and home loans, which bolsters their credit growth targets.
For the December 2024 quarter, SBI recorded a 13.49% rise in gross advances, with domestic corporate loans up by 14.86% and retail personal loans increasing by 11.65%. Home loans also saw a growth of 14.26%. The bank’s deposits rose by 9.81% year-on-year, while CASA deposits increased by 4.46%. Addressing private capital expenditure, Setty noted the ongoing activity across sectors, although sectors like steel have yet to experience a significant uptick.
The Union Budget 2025-26 proposed measures, including raising the personal income tax exemption limit to ₹12 lakh crore and increasing the TDS threshold on fixed deposits for senior citizens to ₹1 lakh. These changes are expected to boost disposable income, leading to increased consumption, investment, and bank deposits, which are projected to rise by ₹40,000-45,000 crore, according to Financial Services Secretary M Nagaraju.
SBI’s Q3 FY2025 performance showed a 4.09% increase in net interest income, totaling ₹41,446 crore, despite a slight dip in domestic net interest margin to 3.15%. The bank’s asset quality improved with the GNPA reducing to 2.07% and net NPA to 0.53%. However, fresh slippages decreased to ₹3,823 crore. Despite the strong financial performance, SBI’s stock closed down 1.79% at ₹752.35 per share.
Original Source: https://indianexpress.com/article/business/sticking-to-overall-credit-growth-target-of-14-16-for-fy2025-sbi-chairman-9821855/
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Publish Date: 2025-02-07 05:35:00
