SBI Aims to Hold One-Quarter of Indian Economy’s Assets, Signals Growth Ambitions-SBI Chairman Setty

State Bank of India (SBI), the nation’s largest lender, wants to boost its asset size from the current 20% of the country’s GDP to 25% by 2047 as it advances its goal of becoming a developed nation, or Viksit Bharat. This would also help the bank rank among the top 10–20 global banks in terms of asset size, according to C S Setty, chairman of SBI.

On the National Payments Corporation of India’s (NPCI) YouTube site, Setty was speaking with Dilip Asbe, MD & CEO. He claimed that because SBI holds a 20% loan share and a 23% deposit share, it is viewed as a stand-in for the Indian economy. For over 15 to 20 years, SBI’s assets have consistently accounted for 20% of the nation’s GDP. SBI is in a position to help India prosper as it moves closer to the Viksit Bharat objective in various ways.

India needs to Focus on Emerging Sectors-Setty

Setty emphasised that India must prioritise the developing industries. Green hydrogen, semiconductors, or battery storage could be the cause. He said that SBI also thinks that because it knew the industries, it has been assisting them in developing their capabilities throughout the years in addition to providing funding. In order to finance projects in developing industries within SBI, an industry cooperative or coordinated body known as the “Centre of Excellence” is being established.

Many of these modern industries will boost the Indian economy, and SBI will be prepared to provide funding for them, Setty continued. Additionally, Setty emphasised that SBI is the only Indian multinational bank with a global reach. According to him, the bank’s foreign operations are concentrated on helping Indian corporations realise their goals of accessing international markets and obtaining funding there, particularly through external commercial borrowings.

He went on to say that SBI wants to increase this 20% GDP asset to 25%. In terms of assets, the national bank aspires to hold a quarter of the Indian GDP. In terms of assets, that also gives SBI the hope that it may one day rank among the top 10 or top 20 global banks.

SBI to Enhance its International Business Operations

SBI’s international activities currently make up 10% of the total balance sheet; they hope to increase this to 12% to 13% in the future. According to Setty, SBI today operates in 29 countries with over 240 contact points, and its overseas balance sheet makes up 10% of its total balance sheet, which is a pretty significant contribution.

He added that SBI has been constantly examining its international operations to help Indian corporations who want to access foreign markets and raise money there, whether through external commercial borrowings or other means. “At the moment, we are the biggest trade credit suppliers to Indian corporations. Thus, that will go on,” he continued.