Speaking to CNBC-TV18, Setty said SBI’s total business crossed ₹100 trillion in Q2 FY25, aided by strong consumption and double-digit growth in all segments except corporate credit. “Corporate credit growth, which was almost flat last quarter, has picked up to 7.1% in Q2 and should touch double digits in the next two quarters,” he said.
Setty noted that private capital expenditure is expected to revive in sectors such as steel and cement, driven by sustained consumption. Mid-corporates and central PSUs are likely to lead the lending recovery, while large corporates are still using up existing cash reserves.
The SBI chief added that asset quality remains strong, with slippages expected to stay around 0.50% and credit costs below 50 basis points for FY26. “We see no concerns on asset quality; the outlook remains robust,” he said.
On margins, Setty attributed the Q2 improvement in net interest margin (NIM) to better liability management and growth in low-cost CASA deposits. “Resource costs have come down; we’ve avoided high-cost wholesale deposits. Exit NIMs for FY26 should exceed 3%,” he added.
Setty also said the bank will spread out its expected credit loss (ECL) provisions over five years to limit the balance sheet impact. Regarding SBI’s remaining 10% stake in Yes Bank, he clarified there is “no compulsion either to exit or stay,” adding that the board will decide the timing.
