State Bank of India chairman CS Setty believes 2025 has turned out better than initially expected, not just for the bank but for the Indian economy as a whole. Speaking in an interview with Moneycontrol, Setty struck an optimistic yet measured tone, highlighting India’s resilience amid global uncertainty while laying out an ambitious medium-term vision for SBI that goes beyond incremental growth.

The year began with significant headwinds. Global trade disruptions, tariff-related tensions, and persistent geopolitical uncertainty created a challenging macro backdrop. Yet, according to Setty, India consistently surprised on both growth and inflation, outperforming pessimistic forecasts. In that environment, SBI managed to deliver stable business performance, protect margins even as policy rates moderated, and execute a successful capital-raising programme.

Setty pointed to SBI’s recent capital raise, which was oversubscribed nearly four times, as a signal of continued investor confidence in the bank’s balance sheet strength and governance. He also highlighted SBI’s role in one of the most complex restructurings attempted in Indian banking, referring to the Yes Bank resolution, calling it a rare example of effective collaboration between lenders, regulators, and the government.

Looking ahead, SBI is not content with maintaining its current scale. Setty described the doubling of the bank’s balance sheet to ₹200 trillion as a “natural progression” rather than a milestone. More importantly, SBI aims to add one percentage point of market share every year. If achieved, this would gradually lift the bank’s footprint to roughly a quarter of India’s GDP as the economy expands.

In practical terms, SBI expects credit growth of 12–14 percent and deposit growth of 10–11 percent in the near term. Setty downplayed concerns around deposits, stating that the bank has adequate liquidity and capital to fund growth. He added that even without factoring in a potential asset management company listing, SBI can support up to ₹12.5 lakh crore of incremental credit growth.

Capital availability, according to Setty, is no longer a binding constraint. Proceeds from the qualified institutional placement, partial exit from Yes Bank, internal accruals, and a planned 6 percent divestment in the AMC business together provide sufficient “firepower” to fund expansion.

For Indian markets, SBI’s outlook matters well beyond the stock itself. As the country’s largest lender, SBI’s balance sheet trajectory is closely tied to the investment and consumption cycle. An institution targeting sustained double-digit credit growth signals confidence in corporate borrowing, retail demand, and infrastructure spending.

Setty’s emphasis on incremental market share gains also underscores intensifying competition within Indian banking. Rather than defending its already dominant position, SBI is pushing its regional teams to actively capture new business, even in districts where it already commands 40–50 percent share. Digital platforms such as YONO are being positioned as key enablers to reach underbanked and non-SBI customers.

SBI’s growth strategy has implications for the broader banking sector. A public-sector lender aggressively pursuing market share forces private banks to compete harder on pricing, service, and digital offerings. At the same time, Setty acknowledged that foreign banks entering India with strong capital bases could inject new energy into the sector, particularly in areas where capital constraints exist.

On acquisition financing, Setty clarified that SBI views it as opportunistic rather than a core growth engine. The bank plans to formalise its approach once final guidelines are in place, potentially setting up a dedicated unit with support from SBI Capital Markets. This cautious stance suggests a focus on risk-adjusted returns rather than balance sheet expansion at any cost.