SBI Chairman Calms Asset Quality Concerns, Reaffirms Robust Yearly Outlook

State Bank of India Chairman CS Setty addressed concerns about asset quality and private capex during the bank's Q1FY27 results press conference. Setty emphasized that first-quarter figures are subject to seasonal variations and reaffirmed positive growth targets for the fiscal year backed by strong demand across various segments.

During the Q1FY27 financial results press conference in Mumbai, State Bank of India (SBI) Chairman CS Setty dismissed worries about asset quality and slowing private capital expenditure, attributing first-quarter performance to seasonal fluctuations and maintaining a positive outlook for the fiscal year.

Setty addressed concerns over a rise in Gross Non-Performing Assets to Rs 74,273 crore and a 0.57% slippage rate, urging caution against premature conclusions based on sequential quarterly figures. He highlighted year-on-year improvements in aggregate performances and noted recoveries and upgrades of Rs 4,900 crore.

Responding to queries about potential stress in agricultural and SME loans, Setty reassured that the portfolio is well-managed, with much of the growth stemming from high-quality sectors. He confirmed SBI's annual credit growth guidance at 14% to 15% and deposit growth projections between 10% and 11%.

Setty also detailed plans to optimize funding costs, including mobilizing $1 billion through commercial paper and a potential $10 billion in FCNR(B) deposits. He reiterated key targets, maintaining Net Interest Margin at 3.00%, ROA at 1.00%, and ROE above 15%, supported by strong liquidity.

With SBI's position as a leader in digital transactions, the bank is enhancing cybersecurity and anti-money laundering measures through a Responsible AI Policy. The Q1FY27 results showed a 10.23% increase in net profit to Rs 21,121 crore, with asset quality indicators improving significantly on an annual basis.