Consensus seems to be pause by RBI's MPC, says SBI chairman C S Setty

State Bank of India Expects Double-Digit Corporate Loan Growth

India's largest bank, State Bank of India (SBI), is witnessing robust credit growth, including healthy corporate loan demand. According to C S Setty, the bank's chairman, effective liability management will play a crucial role in protecting the bank's margin above 3 per cent.

Key Excerpts from an Interview with C S Setty:

• Corporate Loan Demand: Setty expects a double-digit increase in corporate loan demand this financial year, indicating a positive outlook for the bank's credit growth.
• Liability Management: The bank's chairman emphasizes the importance of effective liability management in protecting the bank's margin above 3 per cent.
• Monetary Policy Review: The Reserve Bank of India's (RBI) Monetary Policy Committee is set to announce its policy review later this week, which may be influenced by the recent sharp depreciation of the rupee and sluggish deposit growth.
• Rupee Depreciation: Setty's comments come at a time when the rupee has been experiencing a sharp depreciation, which may impact the bank's operations and growth.
• Deposit Growth: The bank's chairman highlights the challenge of sluggish deposit growth, which may affect the bank's ability to maintain its margin.

Impact of RBI's Monetary Policy on SBI's Growth

The RBI's policy review is expected to have a significant impact on SBI's growth, particularly in the context of the rupee's depreciation and sluggish deposit growth. The bank's ability to manage its liabilities effectively will be crucial in maintaining its margin and achieving its growth targets.

Achieving Double-Digit Corporate Loan Growth

To achieve double-digit corporate loan growth, SBI will need to focus on effective liability management, risk assessment, and credit underwriting. The bank's ability to manage its credit risk and maintain its margin will be critical in achieving its growth targets.