Latest news with #Setty
The Print
a day ago
- Business
- The Print
Treasury, forex gains help SBI post 10 pc growth in Q1 net profit; core income contracts
Despite an 11.6 per cent jump in overall advances, the core net interest income declined by 0.13 per cent to Rs 41,072 crore, as net interest margins contracted by 0.33 per cent to 3.02 per cent, following the RBI's deep rate cuts and the time taken for deposit rate repricing impacted the spreads. On a standalone basis, the country's largest lender's net profit grew to Rs 19,160 crore from Rs 17,035 crore in the year-ago period. Mumbai, Aug 8 (PTI) State Bank of India on Friday reported a 9.71 per cent increase in its consolidated net profit to Rs 21,201 crore in the June 2025 quarter, helped by a handsome performance on the treasury and forex income. Its chairman CS Setty told reporters that the NIMs will follow a U-shaped trajectory in FY26, pointing out that there will be challenges on NIMs in the second quarter before the number inches up, and added that it aims to have a NIM of 3 per cent for FY26 on an annual basis. A 55 per cent jump in overall non-interest income at Rs 17,346 crore helped the bank deliver its profit growth for the quarter. This was led by a 352 per cent rise in forex income at Rs 1,632 crore and the profit on sale of investments being 144 per cent higher at Rs 6,326 crore. Additionally, restricting growth in operating expenses, which were up 7.88 per cent to Rs 27,874 crore, also helped the bottomline. From a loan growth perspective, Setty said the bank is maintaining its target of growing at 12 per cent for FY25. Corporate advances increased by 5.7 per cent, and the domestic retail segment rose 12.56 per cent, and overseas book climbed 14 per cent year-on-year during the reporting quarter. The chairman said the bank has a pipeline of Rs 7 lakh crore, including proposals and cleared loans yet to be disbursed, and the current uncertainties stemming from geopolitical issues are delaying disbursements. The bank is hoping for an acceleration in corporate loan disbursements in the remainder of the year and close FY26 with a 10 per cent loan growth in the segment, he said. Setty said companies are not investing due to a lack of clarity on the consumption demand front, and sectors like renewable power and data centres, which are seeing the maximum credit demand at present. Acknowledging that the bank has exposures to the 4-5 sectors directly impacted by the US move on tariffs, he said the banking sector will not be impacted by the measures unleashed by the Trump administration as its overall contribution to bank credit is under 2 per cent. The uncertainty over the tariff issue will have a greater impact because businesses are deferring their investment decisions, Setty said. 'The narrative is more damaging. I think that it needs to be addressed,' he said. Its managing director Ashwini Kumar Tewari said the bank expects the current uncertainties to settle down by the third quarter. SBI will not face any impact of IT sector layoffs because of its diversified book, and much of the personal loans it gives are to government servants. Setty also said the start of the festive season will help grow the retail loans portfolio, and the bank is very keen to grow the unsecured book within that. On the asset quality front, the bank's gross non-performing assets ratio was unchanged over the last quarter at 1.83 per cent, and Setty reiterated that the idea is to keep it under 2 per cent across cycles. The fresh slippages came at Rs 7,945 crore, and Setty explained that the first quarter sees elevated levels on the number and that over Rs 1,600 crore of loans classified as bad as on June 30 have already returned to performing status by now. The overall provisions stood at Rs 4,759 crore against Rs 3,449 crore in the year-ago period. The deposit growth came at 11.66 per cent, and Setty said that the overall cost of deposits has peaked now. Its overall capital adequacy stood at 14.63 per cent as of June 30, with the core tier-I ratio at 11.10 per cent. Among its subsidiaries, SBI Life's PAT grew to Rs 594 crore from Rs 520 crore for the quarter, SBI Card declined to Rs 556 crore from Rs 594 crore in the year-ago period, and the general insurance arm saw a marginal rise at Rs 188 crore. The SBI scrip closed 0.09 per cent down at Rs 804.55 apiece on Friday against a 0.95 per cent correction on the benchmark. PTI AA BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
a day ago
- Business
- Time of India
Home loans drive SBI growth, PSB beats HDFC in Q1 lending
MUMBAI: Home loans were a key growth driver for SBI in the June quarter, with outstanding credit rising 15% to Rs 8.5 lakh crore at June-end from Rs 7.4 lakh crore in June 2024. Of the Rs 3.6-lakh-crore increase in its loan book over the year, nearly a third - Rs 1.1 lakh crore - came from home loans. Meanwhile, HDFC Bank's outstanding home loans increased 7% to Rs 8.4 lakh crore in June 2025 from Rs 7.9 lakh crore in June 2024. The private lender's home loan growth has been sluggish, which the bank attributed to intense price competition. In Q1, SBI's mortgage book growth was around Rs 20,000 crore, rising from an outstanding base of Rs 8.3 lakh crore as of March 2025. SBI's loan additions during the first quarter were nearly 35% of the total of Rs 56,643 crore in home loans added by banks during the first quarter, RBI data showed. In the earnings call, SBI chairman C S Setty said that SBI's incremental loan market share gains were "led primarily by high return on risk-weighted asset segments such as retail mortgages and secured small business credit", indicating that home loans were a key driver of the bank's credit growth in the quarter. The push for housing has come against a backdrop of slower corporate credit growth, which Setty attributed to around Rs 12,000 crore of prepayments as borrowers refinanced at lower rates in a declining interest rate cycle, the shift of Rs 16,000-18,000 crore of borrowing by large corporates to the more competitive commercial paper market, and SBI's decision not to match very low rates in some cases to preserve risk-adjusted pricing, noting that such trends are a recurring feature when interest rates fall. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like La Mutis: Unsold Sofas May Be at Bargain Prices (Prices May Surprise You) Sofas | Search Ads Search Now Undo According to Setty, home loans have been the main driver for retail credit as well. "Home loans we have done 15% ... that's a phenomenal growth. But I definitely visualise that the unsecured personal loan segment and auto loan segment is not doing all that well in terms of sales. These two will pick up in the second half," he said. On tariffs, Setty said, "As far as supply chain disruption and tariff order are concerned, there are four or five sectors with higher impact, but from a banking perspective they pose no systemic risk as SBI's exposure is minimal." Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
The Print
2 days ago
- Business
- The Print
SBI General Insurance, SBI Mutual Fund under consideration for listing: Official
'In our portfolio, there are two companies we are seriously considering—the Asset Management Company (SBI Mutual Fund) and SBI General Insurance. However, the timelines are yet to be decided. These two companies are strong candidates for listing,' he told reporters on the sidelines of the event. Setty made the remarks during the launch of specialised health insurance branches of SBI General Insurance in Telangana and Andhra Pradesh. Hyderabad, Aug 9 (PTI) SBI Chairman C S Setty on Saturday said SBI General Insurance and SBI Mutual Fund are under consideration for public listing, though no specific timeline has been finalised. Responding to questions about the initial public offering (IPO) plans for SBI General Insurance, Setty said no fixed schedule has been set. On the impact of US tariffs, Setty said the direct effect on Indian exports is limited due to their geographic and sectoral diversification. However, sectors such as chemicals, textiles, gems, and jewellery, which mainly export to the US, could face challenges, he added. He further said that the banking sector's exposure to these industries is limited. The central government is working to support the directly affected sectors if the tariff issue persists, with banks stepping in if necessary, he added. Setty expressed confidence that the tariff-related issues would be resolved soon. 'The more important thing is that this uncertainty surrounding tariffs should be addressed at the earliest,' he said. On bancassurance reforms, he said the focus is to ensure customers are not sold unsuitable products. 'Regulators, policymakers, banks, and insurance companies are working to make the right products available and improve insurance penetration,' he added. Speaking on recruitment, Setty said SBI has consistently hired staff for over a decade and will continue to do so. The health insurance branches launched by SBI General Insurance in Andhra Pradesh and Telangana are the 'first of their kind', with plans for nationwide expansion, according to an SBI General Insurance statement. The strategic expansion is part of the company's broader mission to strengthen its presence in underserved markets, increasing accessibility to health insurance solutions for millions of individuals and households, it said. Referring to SBI's slogan, 'banker to every Indian,' Setty said his ambition is for SBI General Insurance to become the 'health insurer for every Indian, to the extent possible.' PTI SJR VVK SJR SSK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
News18
3 days ago
- Business
- News18
SBI General Insurance, SBI Mutual Fund under consideration for listing: Official
Agency: PTI Last Updated: Hyderabad, Aug 9 (PTI) SBI Chairman C S Setty on Saturday said SBI General Insurance and SBI Mutual Fund are under consideration for public listing, though no specific timeline has been finalised. Setty made the remarks during the launch of specialised health insurance branches of SBI General Insurance in Telangana and Andhra Pradesh. 'In our portfolio, there are two companies we are seriously considering—the Asset Management Company (SBI Mutual Fund) and SBI General Insurance. However, the timelines are yet to be decided. These two companies are strong candidates for listing," he told reporters on the sidelines of the event. Responding to questions about the initial public offering (IPO) plans for SBI General Insurance, Setty said no fixed schedule has been set. On the impact of US tariffs, Setty said the direct effect on Indian exports is limited due to their geographic and sectoral diversification. However, sectors such as chemicals, textiles, gems, and jewellery, which mainly export to the US, could face challenges, he added. He further said that the banking sector's exposure to these industries is limited. The central government is working to support the directly affected sectors if the tariff issue persists, with banks stepping in if necessary, he added. Setty expressed confidence that the tariff-related issues would be resolved soon. 'The more important thing is that this uncertainty surrounding tariffs should be addressed at the earliest," he said. On bancassurance reforms, he said the focus is to ensure customers are not sold unsuitable products. 'Regulators, policymakers, banks, and insurance companies are working to make the right products available and improve insurance penetration," he added. Speaking on recruitment, Setty said SBI has consistently hired staff for over a decade and will continue to do so. The health insurance branches launched by SBI General Insurance in Andhra Pradesh and Telangana are the 'first of their kind', with plans for nationwide expansion, according to an SBI General Insurance statement. The strategic expansion is part of the company's broader mission to strengthen its presence in underserved markets, increasing accessibility to health insurance solutions for millions of individuals and households, it said. Referring to SBI's slogan, 'banker to every Indian,' Setty said his ambition is for SBI General Insurance to become the 'health insurer for every Indian, to the extent possible." PTI VVK SJR SSK view comments First Published: 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.
The Hindu
3 days ago
- Business
- The Hindu
Direct impact of higher tariff likely to be limited: SBI head
State Bank of India Chairman Challa Sreenivasulu Shetty on Saturday said the direct impact of the higher tariff scenario unfolding in the U.S. is likely to be limited not just on books of the bank, but also on India given the geographical spread and basket of exports from the country. Textiles, gems and jewellery and aquamarine are among a few industries bound to be impacted given their exports are predominantly to the U.S. and consequently may require some hand holding. Though exposure to the industries is limited, if need be banks will get involved in 'how do we protect [them] along with the government of India if the tariff issue is not resolved faster,' he told mediapersons after launching SBI General Insurance's 30 specialised health insurance branches across Andhra Pradesh and Telangana at a function in Hyderabad. On likely relief measures banks could provide, Mr. Setty said, 'We are working with the regulator. It's too early to talk... we are confident some resolution will happen on tariffs since India is not alone as several other countries are also facing tariff issues. The uncertainty surrounding tariffs should be addressed at the earliest.' Will restructuring be one of the relief measures, the SBI head said 'I think it's too early. Let's not go there. I'm sure there will be some solution for this tariff related.' Mulling two IPOs To a query on plans for an Initial Public Offering of the general insurance subsidiary, he said SBI General Insurance and asset management subsidiary SBI Mutual Fund are the two serious candidates in the Group being considered for listing. 'But the timelines are not decided yet,' he added. On further tweaks to bancassurance norms are required, he said lot of reforms have happened in recent times to the insurance distribution model involving the banks. It is a powerful channel, he said, adding the focus should be on ensuring right selling happens. 'Nobody should be sold a product which is not suitable for them. Everyone of us is working towards that... [be it] insurers, banks, policymakers and regulators while ensuring insurance penetration grows.' Though the number of policies customers cancel within the free look period is miniscule, SBI General Insurance analyses such cases to ensure that it is not account of mis-selling. Additionally, the cases are also looked into by the internal ombudsman, he said. SBI General Insurance MD and CEO Naveen Chandra Jha said the insurer is piloting the concept of dedicated offices for health insurance branches from the two States and may extend it to Odisha, West Bengal, Bihar and Jharkhand next.
