In a recent statement, State Bank of India (SBI) Chairman Dinesh Khara expressed optimism about India’s economic prospects, predicting an upswing in real GDP growth. Khara highlighted factors such as robust investment demand and improved business and consumer sentiments as key drivers of this positive trend.
Khara outlined SBI’s projections for the financial year 2025, expecting a credit growth of 14–16 percent, driven by momentum in both retail and corporate loans. He emphasized the favorable conditions shaping India’s economic landscape, paving the way for accelerated growth.
According to Khara, the Reserve Bank of India (RBI) has forecasted a real GDP growth of 7 percent for the current financial year. He noted a decline in consumer price index-based inflation (CPI), which is expected to moderate further in the coming months, contributing to a more stable economic environment.
In fiscal year 2024, scheduled commercial banks witnessed significant credit growth of around 20 percent, with deposits growing at approximately 13 percent. Khara anticipates this momentum to continue into the current fiscal year, reflecting sustained growth in credit across various sectors.
SBI’s own performance reflects these positive trends, with gross advances growing by 15.24 percent in FY24. Notably, domestic loans saw a notable increase, particularly in SME advances (20.53 percent year-on-year) and agriculture advances (17.92 percent year-on-year).
Looking ahead, Khara remains optimistic about the bank’s growth prospects, especially in corporate lending. With a corporate loan pipeline of Rs 4 lakh crore for FY25, Khara anticipates strong traction in this segment, driven by funding demand from diverse sectors, including infrastructure, electric vehicles (EVs), and semiconductors.
In addition to lending growth, SBI expects a deposit growth of 12–13 percent for FY25, further supporting its expansion plans.
Despite global economic uncertainties, SBI has reported strong financial performance, with standalone net profit reaching a record high in the March 2024 quarter. Key indicators such as net interest income (NII) and gross non-performing assets (GNPAs) also reflect positive trends, underscoring the bank’s resilience amid challenging conditions.
As SBI continues to navigate evolving economic landscapes, its outlook remains optimistic, driven by a proactive approach to lending and a focus on sustainable growth.
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