The State Bank of India (SBI) has set an ambitious target to reach a net profit of Rs 1 lakh crore in the next 3 to 5 years. The bank’s Chairman, CS Shetty, revealed this goal and expressed confidence in becoming the first Indian company to achieve such a milestone. For the financial year 2023-24, SBI recorded an impressive net profit of Rs 61,077 crore, marking a 21.59% growth.
Focus on Growth with Customer-Centric Approach
While profits and market capitalization are crucial to SBI’s success, Shetty emphasized that the bank’s focus is equally on its customers. He highlighted that this customer-centric approach is a core element of SBI’s operations and growth plans. The blueprint shared by Shetty includes a significant push towards expanding the corporate loan portfolio, driven by rising demand from the private sector.
Private Sector Investments Picking Up
One of the key factors behind SBI’s aggressive profit target is the growing private sector investments. Shetty mentioned that private capital expenditure is seeing good momentum, particularly in infrastructure sectors like roads, renewable energy, and refineries. The Union government’s push towards public spending also plays a vital role, with Finance Minister Nirmala Sitharaman having announced a record capital expenditure of Rs 11.11 lakh crore for 2024-25, which accounts for 3.4% of India’s GDP.
Strong Corporate Loan Demand Worth Rs 4 Lakh Crore
SBI’s corporate loan demand is another critical driver for its future growth. Shetty shared that the bank has already received loan requests worth Rs 4 lakh crore, reflecting strong interest from Indian industries. Many companies are now taking loans for expanding existing projects, a sign of renewed business confidence. With capital expenditure expected to increase in the second half of the fiscal year 2024-25, SBI is well-positioned to meet this growing demand.
Bright Outlook for Private and Public Expenditure
In addition to strong corporate loan demand, Shetty pointed out that government expenditure will also play a crucial role in SBI’s growth. Public spending, especially on infrastructure, is expected to boost the overall economic environment. As private capital expenditure rises, particularly in the second half of the fiscal year, SBI’s role in financing these investments will continue to strengthen.
