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SBI Chairman Dismisses Funding Worries, Cites Rs 3 Lakh Crore Liquidity

SBI Chairman Challa Sreenivasulu Setty has dismissed funding concerns, citing Rs 3 lakh crore excess liquidity to support 17% loan growth. He stated that 11-12% deposit growth is sufficient to fund credit expansion. The bank reported its highest-ever annual net profit of Rs 80,032 crore for FY26. Asset quality improved with GNPA ratio dropping to 1.49%.

Key Points: SBI Chairman: Rs 3 Lakh Crore Liquidity Supports Loan Growth

  • SBI Chairman dismisses funding concerns
  • Rs 3 lakh crore excess liquidity available
  • Record annual net profit of Rs 80,032 crore
  • GNPA ratio drops to 1.49%
2 min read

SBI Chairman dismisses funding concerns, cites Rs 3 lakh crore excess liquidity to support 17% loan growth

SBI Chairman Challa Sreenivasulu Setty dismisses funding concerns, cites Rs 3 lakh crore excess liquidity to support 17% loan growth amid record annual profit.

"Even 11 per cent deposit growth provides significant absolute growth because our base is very large. - Challa Sreenivasulu Setty"

Mumbai, May 8

State Bank of India Chairman, Challa Sreenivasulu Setty, on Friday stated that India's largest public sector bank faces no funding challenges, citing an excess Statutory Liquidity Ratio of approximately Rs 3 lakh crore available on its balance sheet.

Responding to a query from ANI regarding how SBI plans to fund high loan demand without further squeezing profit margins, Setty explained during the Q4FY26 results press conference, "Even 11 per cent deposit growth provides significant absolute growth because our base is very large. Therefore, an 11-12 per cent growth rate in deposits should support a 17 per cent credit growth. More importantly, we have excess SLR, liquidity available in our balance sheet, of about Rs 3 lakh crore. With that available liquidity and our planned deposit growth rate, I believe there is no problem in terms of funding."

Setty also dismissed reports of a crisis in Point of Sale (POS) terminals linked to the ongoing West Asia crisis.

When asked how SBI is preparing for potential disruptions, he said, "We are not facing any crisis regarding POS terminals within our company, particularly our payments subsidiary, which exclusively delivers for us. If concerns arise moving forward, we have sufficient inventory. This is a temporary situation, and we are not facing any concerns as of now."

The lender delivered a landmark performance for the 2025-26 financial year, reporting its highest-ever annual net profit of Rs 80,032 crore. For the final quarter (Q4FY26), the bank posted a net profit of Rs 19,684 crore, marking a 6 per cent year-on-year increase.

This record-breaking bottom line was largely driven by a sharp reduction in loan loss provisions and a steady strengthening of the bank's balance sheet.

Asset quality also showed notable improvement, with the Gross Non-Performing Asset (GNPA) ratio dropping to 1.49 per cent from 1.57 per cent in the previous quarter.

While the Net NPA ratio held steady at 0.39 per cent, the bank's core income, Net Interest Income (NII)--rose 4.1 per cent year-on-year to Rs 44,380 crore. Although the NII figure was slightly below market expectations, the SBI board signalled confidence in its capital position by declaring a dividend of Rs 17.35 per equity share.

- ANI

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Reader Comments

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Sarah B
Record profit of Rs 80,032 crore is impressive, especially the fall in NPAs to 1.49%. But I'm a bit skeptical about the NII growth being only 4.1% YoY - that's weak compared to loan growth. The dividend of Rs 17.35 per share is a good gesture though.
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Vikram M
Setty is doing a decent job but the POS terminal issue is a real pain for small merchants in Mumbai. My friend's shop had to wait 2 weeks for a replacement. SBI says 'no crisis' but ground reality is different. Hope they fix the supply chain soon.
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Priya S
Great to see asset quality improving - GNPA ratio down to 1.49% is a healthy sign. But I worry about retail loans growing so fast when household savings are already under pressure from inflation. Banks need to be careful with unsecured lending.
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Rohit P
Honestly, I'm glad SBI is confident about funding. The excess SLR of Rs 3 lakh crore gives them a solid buffer. But as a customer, I wish deposit rates would rise faster. My FD rates haven't kept up with inflation. 🏦
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Divya L
Record profit is good for the economy but I hope the benefit reaches depositors too. The dividend declaration shows profits are going to shareholders but regular savers need better interest rates. SBI should prioritize customer welfare alongside growth.

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