Tax, interest rate cuts to pump up consumption, credit: SBI

widely seen to increase the flow of credit.

- 

SBI Chairperson Challa Sreenivasulu Setty.

(PT)

In 2025, the central bank's monetary policy committee (MPC) has reduced the repo rate by 100 basis points across three meetings.

In September, the GST Council introduced a sweeping rationalization of the indirect tax regime, bringing down prices of a wide range of items. A day later, Union finance minister Nirmala Sitharaman said she expects a surge in consumption to follow, and that increased purchases of goods and services will likely make up for the impact of lower tax rate on revenue receipts this year itself.

For the September quarter, SBI reported a year-on-year loan growth of nearly 13% to Rs 44.19 trillion. Sequentially, it was up by almost 4%.

The bank reported a 12.3% YoY growth in domestic advances. Including loans from foreign offices, loan growth was at 12.7% and the aggregate loan book stood at ₹44.2 trillion. Corporate loans grew 7% and retail loans were up 14% in the three months through September.