SBI to be One-Fourth of Indian Economy – Setty | Finance News
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SBI Aims for Top Global Ranking, Increased Role in Indian Economy
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State Bank of India (SBI) plans to expand its asset size to 25% of India’s GDP by 2047, perhaps placing it among the world’s top 20 banks. This ambition aligns with India’s “Viksit Bharat” (Developed India) goal.
SBI’s Growth strategy and Economic Alignment
C S Setty, chairman of State Bank of India, outlined the bank’s strategic goals during a conversation with Dilip Asbe, MD & CEO of National Payments Corporation of India (NPCI), on NPCI’s YouTube channel. Setty stated that SBI currently represents 20% of india’s Gross Domestic Product (GDP) in terms of asset size and aims to increase this to 25% as India progresses towards becoming a developed nation by 2047.
This expansion isn’t solely about size; it’s about SBI’s role as a key facilitator of India’s economic growth. Setty emphasized that SBI is often viewed as a ”proxy to the Indian economy,” holding a 23% share of national deposits and a 20% share of credit.
Overseas Operations and Corporate Support
SBI is actively supporting Indian corporations’ international ambitions. According to Setty, “the overseas balance sheet contributes 10 per cent to the overall balance sheet, which is very significant.” The bank is focused on enabling Indian companies to access foreign markets and secure financing,including External Commercial Borrowings (ECBs).
SBI currently holds the position of the largest trade finance provider for Indian corporates, a role it intends to maintain. This commitment to trade finance is crucial for supporting India’s growing international trade and investment.
SBI’s Current Market Position
As of October 5, 2023, SBI holds a significant position within the Indian financial landscape:
| Metric | Percentage |
|---|---|
| Share of National Deposits | 23% |
| Share of Credit | 20% |
| Share of GDP (Asset Size) | 20% (current) |
| Target Share of GDP (Asset Size) | 25% (by 2047) |