Latest news with #CSSetty
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Business Standard
6 days ago
- Business
- Business Standard
New IRDAI chairman, private banks' retail loan growth, hiring at major commercial banks & more
The Centre has appointed Ajay Seth, recently retired finance secretary, as the new chairman of the Insurance Regulatory and Development Authority of India, 4 months after the position was left vacant. He'll serve for 3 years or until he turns 65, whichever comes first. Retail loan growth at private banks slowed down in Q1 of FY26, with the top 5 lenders showing single-digit growth. Hiring at major commercial banks dropped in FY25 due to slower retail business growth, fewer new branches, and improved attrition rates thanks to better employee engagement. SBI is aiming high. It wants to be among the world's top 10 banks by market value in the next five years, said chairman CS Setty after its latest Qualified Institutional Placement share listing on the NSE. India's net FDI saw a major dip in May 2025, down 98% to just $40 million, mainly due to higher repatriation and more outward investments by Indian firms.
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Business Standard
23-07-2025
- Business
- Business Standard
₹25,000 cr QIP shows investor confidence, to boost credit growth: SBI chief
Speaking at a ceremony at the NSE to mark the the fund raise as India's biggest share sale ever, Setty said the capital will be deployed for asset growth Press Trust of India Mumbai SBI chairman C S Setty on Wednesday said the ₹25,000-crore capital raise through the qualified institutional placement (QIP) route is a vote of confidence on the country's largest lender and also the Indian economy. Speaking at a ceremony at the NSE to mark the the fund raise as India's biggest share sale ever, Setty said the capital will be deployed for asset growth. He also said that even before the QIP, the bank was in a position to support asset growth of up to ₹6 lakh crore, but the fund raise will be of help for it. "This landmark equity issue is a vote of confidence in SBI's strong fundamentals, potential risk management and the customer centricity with the digital first approach," Setty said. Thanking the investors led by state-run life insurance behemoth LIC for the response to the issue, which received bids of over ₹1.12 lakh crore and was over-subscribed by over four times, Setty also spelled out the revised capital levels. The common equity tier-I capital will increase to 11.5 per cent, he said, adding that the bank's objective is to take the level up to 12 per cent. The bank is all set to book gains from its share sale in Yes Bank and also has a slew of other assets including stakes in its insurance arms from where it can raise more funds. Setty said nearly two-thirds of the investors in the recent issue were from outside the country, and added that the same provides confidence to all stakeholders. Meanwhile, in a note published on Monday, global ratings agency Moody's Investors Service said the bank will be able to post a credit growth of 12 per cent in FY26, at par with the banking system growth. The agency affirmed the bank's Baa3 rating and also upgraded the baseline credit assessment while maintaining a stable outlook. "SBI's strongest retail franchise amongst Indian banks, access to low-cost deposits, and sufficient holdings of liquid government securities support its funding and liquidity," the agency said. The upgrade of the bank's BCA is driven by our expectation that the bank's internal capital generation along with opportunistic external capital raise will improve its capitalisation over the next 12-18 months, bringing its standalone credit profile in line with the other similarly rated peers, it said. SBI's adequate net interest margin, diversified non-interest income and low credit cost support its profitability, it said. However, the bank's profitability is set to moderate in the next couple of quarters because of policy rate cuts feeding through its lending rates, the agency said, adding that a gradual lowering of funding costs in the latter half of the fiscal year will be of help to the bank. The bank scrip closed 0.71 per cent up at ₹820.75 apiece on the BSE on Wednesday as against gains of 0.66 per cent in the benchmark.
News18
23-07-2025
- Business
- News18
Rs 25,000-cr QIP a vote of confidence, will support credit growth: SBI chairman
Agency: Last Updated: July 23, 2025, 20:30 IST Representational image (Image: News18) Mumbai, Jul 23 (PTI) SBI chairman C S Setty on Wednesday said the Rs 25,000-crore capital raise through the qualified institutional placement (QIP) route is a vote of confidence on the country's largest lender and also the Indian economy. Speaking at a ceremony at the NSE to mark the the fund raise as India's biggest share sale ever, Setty said the capital will be deployed for asset growth. He also said that even before the QIP, the bank was in a position to support asset growth of up to Rs 6 lakh crore, but the fund raise will be of help for it. 'This landmark equity issue is a vote of confidence in SBI's strong fundamentals, potential risk management and the customer centricity with the digital first approach," Setty said. Thanking the investors led by state-run life insurance behemoth LIC for the response to the issue, which received bids of over Rs 1.12 lakh crore and was over-subscribed by over four times, Setty also spelled out the revised capital levels. The common equity tier-I capital will increase to 11.5 per cent, he said, adding that the bank's objective is to take the level up to 12 per cent. The bank is all set to book gains from its share sale in Yes Bank and also has a slew of other assets including stakes in its insurance arms from where it can raise more funds. Setty said nearly two-thirds of the investors in the recent issue were from outside the country, and added that the same provides confidence to all stakeholders. Meanwhile, in a note published on Monday, global ratings agency Moody's Investors Service said the bank will be able to post a credit growth of 12 per cent in FY26, at par with the banking system growth. The agency affirmed the bank's Baa3 rating and also upgraded the baseline credit assessment while maintaining a stable outlook. 'SBI's strongest retail franchise amongst Indian banks, access to low-cost deposits, and sufficient holdings of liquid government securities support its funding and liquidity," the agency said. The upgrade of the bank's BCA is driven by our expectation that the bank's internal capital generation along with opportunistic external capital raise will improve its capitalisation over the next 12-18 months, bringing its standalone credit profile in line with the other similarly rated peers, it said. SBI's adequate net interest margin, diversified non-interest income and low credit cost support its profitability, it said. Swipe Left For Next Video View all However, the bank's profitability is set to moderate in the next couple of quarters because of policy rate cuts feeding through its lending rates, the agency said, adding that a gradual lowering of funding costs in the latter half of the fiscal year will be of help to the bank. The bank scrip closed 0.71 per cent up at Rs 820.75 apiece on the BSE on Wednesday as against gains of 0.66 per cent in the benchmark. PTI AA HVA (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments News agency-feeds Rs 25,000-cr QIP a vote of confidence, will support credit growth: SBI chairman Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
23-07-2025
- Business
- Business Standard
SBI eyes spot among world's top 10 banks by market value in 5 years
The country's largest lender, State Bank of India (SBI), is looking to be among the top 10 global banks in market capitalisation over the next five years. C S Setty, chairman, SBI, said, 'The scope for value creation for the stakeholders is potentially very high. So the larger ambition is, if the market supports, whether we can be part of the top 10 global banks in terms of the market capitalisation (five years).' 'The effort is to ensure that we are consistent in our performance—financial performance, improvement in market share (of deposits and advances) and customer satisfaction,' he said after the listing of shares issued under QIP at NSE. SBI's market capitalisation has risen from Rs 3.25 trillion at the end of March 2021 to Rs 4.40 trillion in FY22, Rs 4.67 trillion in FY23, Rs 6.71 trillion in FY24 and Rs 7.13 trillion at the end of March 2025, according to its analysts' presentation for FY25. The market capitalisation based on Wednesday's trading price stood at Rs 7.53 trillion. The QIP was oversubscribed 4.5 times, with foreign investors accounting for 64.3 per cent of total demand. Marquee long-term investors received approximately 88 per cent of the final allocation, including 24 per cent of the issue size placed with foreign long-term investors. 'We knew that it would be oversubscribed, but this kind of overwhelming response (4.5 times) is a pleasant surprise for us,' Setty said. The bank issued 306 million equity shares to Qualified Institutional Buyers (QIBs) at a price of Rs 817 (including a premium of Rs 816.00 per equity share), aggregating Rs 25,000 crore. The issue opened on 16 July 2025 and closed on 21 July 2025. The capital will augment SBI's Common Equity Tier-1 (CET-1) buffer. The CET-1 will rise to approximately 11.50 per cent from 10.81 per cent as on 31 March 2025, supporting calibrated credit growth across retail, MSME and corporate segments. As for raising debt capital, Setty said additional Tier-I (AT1) bonds would essentially be for replacing the existing Tier-I paper maturing over a period. The Tier-II would be a mix of replacement and new funds. The bank's board has given the nod for raising up to Rs 20,000 crore via AT1 and Tier-II bonds. Asked about further reduction in term deposit rates, he said, 'About the industry, I think the interest rates are easing on the deposits.' The bank has already slashed short-term deposit rates by up to 60 basis points so far in the current financial year. In June, it also reduced interest rates on savings bank deposits to 2.5 per cent from 2.7 per cent earlier. The bank has recently cut the Marginal Cost of Funds-based Lending Rate (MCLR)—a benchmark for lending to businesses—by 15 or 20 basis points across tenors. 'MCLR is formula driven; it gets readjusted as we move forward,' he added. He declined to elaborate on interest rates, citing a silent period ahead of results for Q1FY26.
Time of India
23-07-2025
- Business
- Time of India
SBI listing was pivotal to growth: Setty
Mumbai: The listing of State Bank of India shares in the stock exchanges in 1955 played a key role in ensuring that the country's largest bank stayed ahead of the pack, said chairman CS Setty at the ceremony to mark the completion of the bank's Rs 25000 crore qualified institutional placement (QIP) at NSE on Wednesday. 'Listing on the exchanges has been pivotal in shaping our identity and fostering growth. It has enabled us to access capital markets, expanding our investor base and reinforcing our commitment to transparency and accountability.,' he said. 'With 452 crore customers and 40 lakh investors, we have remained steadfast through the ups and downs of the market, guided by our principles of consistency, productivity, and resilience,' he said Calling the Rs 25,000 crore QIP India's largest ever equity capital raise, Setty said, 'The book received a robust demand and was oversubscribed four and a half times. More than Rs 1.12 lakh crore was the amount of bids we attracted, reflecting strong investor confidence in SBI and in India's banking sector.' 'Foreign investors accounted for more than 64% of the total demand, underscoring the continued interest in India's growth story. This landmark equity issue is a vote of confidence in SBI's strong fundamentals, prudential risk management, and customer centricity,' he said. Setty said the bank would use the capital to strengthen buffers and fuel credit growth. 'With a digital-first approach, the bank will utilise these funds to augment capital buffers. The capital structure will be strengthened further, and it will support credit growth across various sectors,' he said. He described SBI as an institution deeply intertwined with the country's development. 'This year, SBI completed celebrating 70 years of its new avatar. Our philosophy—'Saat Dashak, Desh ke Saath'—reflects our commitment to nation-building. Our legacy of over 219 years is testimony to the unwavering support of our customers, investors, employees, and stakeholders who have stood by us through thick and thin,' Setty said. 'Today's milestone not only marks our enduring presence in the market but also highlights the remarkable journey we have embarked upon since our listing on NSE in 1995,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
