SBI Aims to Become First Financial Firm to Cross Rs 1 Lakh Crore Profit Milestone: Chairman

State Bank of India (SBI) is setting ambitious goals to become the first Indian financial institution to achieve a net profit of Rs 1 lakh crore in the next 3-5 years, according to its chairman, C.S. Setty. In FY24, the bank posted a net profit of Rs 61,077 crore, reflecting a growth of 21.59%.

“We are confident about reaching this milestone, given our potential,” Setty stated. However, he emphasized that while profits and market capitalization are important, customer satisfaction remains at the core of SBI’s operations.

On the corporate lending front, Setty revealed that SBI has a credit pipeline of Rs 4 lakh crore, with strong interest from private sector companies. He expects private capital expenditure to rise in the second half of the fiscal year, particularly in infrastructure sectors like roads, renewable energy, and refineries.

Additionally, the government’s focus on public spending, highlighted in Finance Minister Nirmala Sitharaman’s budget announcement, plays a significant role. The capital expenditure target has been increased by 11.1%, reaching a record Rs 11.11 lakh crore for 2024-25, which is 3.4% of the nation’s GDP.

Setty also noted that some corporates are now seeking loans for brownfield expansions, further strengthening the bank’s lending pipeline. He is optimistic that both private and public capital expenditure will drive growth, especially after the initial slowdown due to the general elections earlier in the year.