SBI Tracking Path to Achieve Net Profit of ₹1 Lakh Crore in the Next 3-5 Years

State Bank of India (SBI), India’s largest lender, is ambitiously aiming to become the first Indian financial firm to achieve a net profit milestone of Rs 1 lakh crore within the next 3-5 years. This ambitious target, as outlined by SBI’s Chairman C S Setty, is underpinned by the bank’s strong financial performance. In FY24, SBI recorded a standalone net profit of Rs 61,077 crore, a significant 21.59% increase.

“Given our potential, we are confident of being the first Indian company to reach this landmark,” Setty affirmed when questioned about the feasibility of achieving a Rs 1 lakh crore net profit in the coming years. However, he emphasised that while financial metrics are crucial, SBI places equal importance on customer-centricity, which forms the cornerstone of its operations.

Regarding corporate loan demand, Setty revealed that SBI has a robust credit pipeline of Rs 4 lakh crore from Indian businesses. He anticipates a surge in private sector capital expenditure in the latter half of the fiscal year, driven by sectors such as infrastructure, renewable energy, and refineries. Some corporates have already funded brownfield expansion using their internal resources, but SBI is now witnessing increased interest in term loans for such projects.

“Our pipeline, encompassing both sanctioned but undisbursed loans and proposals under review, amounts to nearly Rs 4 lakh crore, underscoring the strong corporate demand,” Setty stated. He expressed optimism about a renewed surge in private capital expenditure during the year, complemented by increased government spending following a slowdown in the first quarter due to general elections.

“We anticipate a significant boost to both private and government capital expenditure in the second quarter and the latter half of the current fiscal year,” Setty concluded.

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