SBI Chairman Advocates for Strengthening Corporate Bond Market

SBI Chairman C S Setty emphasized the need to strengthen the corporate bond market. He assured that the banking industry’s exposure to small loans remains manageable, thanks to NBFCs and MFIs. Setty addressed concerns about the slowdown in unsecured loans and the importance of maintaining a healthy CASA ratio.

During a recent address, State Bank of India Chairman C S Setty highlighted the necessity of fortifying the corporate bond market, while asserting the banking sector's sustainable exposure to small loans, courtesy of active participation by NBFCs and MFIs.

Speaking at the Bengal Chambers of Commerce and Industry's annual financial market conclave, Setty addressed growing concerns over the deceleration in unsecured loans and reiterated the significance of maintaining a robust CASA (current and savings account) ratio.

Setty also pointed out that the reduction in retail unsecured credit is largely due to the increased credit risk weight, which he sees as an effective stabilizing measure. He maintained that SBI's position remains strong, expecting continued growth and efficient cash management across corporations and governmental bodies.

(With inputs from agencies.)