Tax and rate cuts to fuel consumption, credit: SBI

SBI expects 12-14% FY26 credit growth, higher than the 11-12% it predicted in Aug

- Subhana Shaikh & Shayan Ghosh

SBI's net profit rose 10% in the September quarter.

(MINT)

A gathering consumption wave is expected to lift credit growth beyond previous projections, India’s largest lender State Bank of India said, as the combined effect of tax and interest rate cuts ripples through the economy. The state-run bank on Tuesday said it expects FY26 credit growth at 12-14%, higher than the 11-12% it predicted as recently as August. The central bank’s recent measures to smooth credit flow alone will raise industry-wide credit growth by 100 basis points, chairman C.S. Setty said.

SBI's net profit rose 10% in the September quarter, powered by gains from the partial sale of its Yes Bank stake in September. Total business, the sum of the bank's loans and deposits, crossed ₹100 lakh crore, the first for any Indian lender.