SBI Chairperson CS Setty optimistic on banking sector’s asset quality and credit growth

State Bank of India (SBI) Chairperson CS Setty expressed strong confidence in the banking sector’s stability and growth trajectory, noting that Indian banks are currently witnessing one of the most stable phases in terms of asset quality.

Speaking to CNBC-TV18 at the India Business Leader Awards (IBLA) 2025 jury round, Setty said, “As far as banking is concerned, I think we are going through one of the most benign asset quality life cycles in the financial services. And I'm sure with a lot of improvement in underwriting and the way we are looking at and the data availability, the asset quality cycle will continue for some more time.”

He added that bank balance sheets are robust and profitability has improved significantly, supported by prudent lending practices and better data-driven credit assessment.

On the subject of credit growth, Setty clarified that it would be inaccurate to say lending momentum has slowed. “Some sectors are doing extremely well, obviously. And when we talk about corporate credit, it is waiting for sustained consumer demand in the country. We see a visible uptick on the consumption side, and if it is sustained, I’m sure the corporates will come back to private capital expenditure,” he told CNBC-TV18 at the India Business Leader Awards (IBLA) 2025.

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