A BANK FOR ALL SEASONS

THE COUNTRY'S LARGEST LENDER HAS CREATED MILESTONES BOTH ON THE OPERATIONAL AND FINANCIAL FRONTS, REINFORCING ITS POSITION AMID VALUATION DEBATES.

- V. KESHAVDEV

#5 DOUBLE-DIGIT INCOME GROWTH
STATE BANK OF INDIA
C.S. Setty, chairman, SBI

IT’S BEEN a promising start for the 27th chairman of India’s largest bank, State Bank of India (SBI), which holds a commanding 23% market share by assets and a 25% share of the total loan and deposits market. Since taking over the top job in August 2024, 59-year-old Challa Sreenivasulu Setty has presented some impressive second-quarter statistics for the current fiscal, reinforcing SBI’s position as a banking powerhouse.

To begin with, the bank’s deposits crossed a significant milestone of ₹50 lakh crore, reaching ₹51.17 lakh crore. “We are humbled to serve one out of every three Indians, and I take pride in saying that our bank, in some manner, touches every Indian family,” Setty told analysts at a post-earnings meet. The statement underscores the bank’s extensive reach and its integral role in India’s financial ecosystem.

More importantly, profit during the quarter surged 28% year-on-year to ₹18,331 crore, beating Street estimates of ₹15,550 crore. Return ratios—return on assets (RoA) and return on equity (RoE)— for the half-year (H1 FY25) stood at 1.13% and 21.78%, respectively. Asset quality remained pristine, with net non-performing assets (NPAs) decreasing by 5% over the year-ago quarter to ₹20,294 crore, improving the bad loan ratio to 0.53% on a gross loan book of ₹39.2 lakh crore.

Legacy Of Strength, Reach

E.A. Sundaram, executive director and chief investment officer at BugleRock Capital, a wealth and asset management firm, highlights SBI’s formidable position in the banking sector. He notes that one-fourth of the country’s population banks with SBI, emphasising its reach and the stronghold it has over government accounts, including those of Central and state government employees, police, military, and paramilitary forces.