SBI Aims for 1% Annual Market Share Gain to Reach 25% of India's GDP: Chairman

State Bank of India (SBI) Chairman CS Setty expressed satisfaction with the bank's performance in 2025 and its positive impact on the Indian economy, despite global economic challenges. Looking ahead to 2026, Setty aims for even greater achievements.

In an interview with Moneycontrol, Setty discussed SBI's growth strategy. While acknowledging that doubling the bank's balance sheet to Rs 200 trillion is a natural progression, he emphasized a more ambitious goal: to capture an additional 1% of market share each year. This would position SBI to account for 25% of India's total GDP.

Key Highlights from the Interview:

• Performance in 2025:** Exceeded expectations, with the Indian economy demonstrating resilience amid global uncertainties. SBI successfully navigated challenges, maintained healthy margins, and completed a highly successful capital raise program that was oversubscribed nearly four times.
• Yes Bank Restructuring:** SBI played a crucial role in the successful restructuring of Yes Bank, highlighting the power of collaboration between various entities, regulators, and the government. The profitable exit from Yes Bank was a highlight, demonstrating a unique approach to restructuring within the banking industry.
• Growth Projections for FY27:** SBI anticipates credit growth of 12-14% and deposit growth of 10-11%. The bank possesses sufficient liquidity and capital to fuel this expansion, further bolstered by the QIP, partial exit from Yes Bank, internal accruals, and the potential listing of SBI's AMC (Asset Management Company).
• Scale and Risk Management:** SBI recognizes the complexities that come with its scale but views it as a strength, managed through a dedicated and highly qualified workforce focused on risk and compliance. The bank has established a robust risk and compliance management vertical extending to the regional office level.
• GDP Contribution Target:** SBI aims to contribute 25% to India's projected $8 trillion GDP. This target is seen as a natural progression for the bank, not merely a distant milestone.
• Global Ranking Aspirations:** While not currently among the top global banks, SBI believes that as India's economy grows and SBI increases its contribution to the GDP, its global ranking will improve.
• Market Share Acquisition:** SBI intends to gain 1% market share annually in every micro market where it operates, even those where it already holds a dominant position. This strategy is essential to surpass defending their current 20% contribution to India's GDP.
• Foreign Bank Interest:** SBI welcomes renewed interest from foreign banks in the Indian banking system, viewing it as a positive development that brings new capital and energy to the sector.

Setty expressed optimism about the Indian economy in 2026, citing supportive fiscal and regulatory measures, including potential tax cuts, GST reforms, and the RBI's commitment to ensuring durable liquidity. He also addressed concerns about potential rate cuts, the rupee's volatility, and acquisition financing, emphasizing SBI's preparedness and strategic approach in these areas.

Regarding SBI's valuation compared to private peers, Setty acknowledged the need for improvement but highlighted the bank's consistent performance and commitment to delivering value to its stakeholders.