State Bank of India Chairman Challa Sreenivasulu Setty expressed optimism about private investment recovery, stating that a broad-based rebound is expected once US tariff disruption settles down. Speaking to ET on the sidelines of the World Economic Forum in Davos, Setty outlined the bank's strategic focus areas and growth trajectory.

Growth Strategy and Performance Targets

Setty emphasized that SBI's growth story remains closely intertwined with India's economic expansion. The bank has consistently maintained growth rates 2-3 percentage points above nominal GDP, demonstrating its strong market position.

The chairman highlighted the bank's focus on leveraging advanced technologies, particularly artificial intelligence, to enhance operational efficiency and boost productivity across physical outlets.

Technology Integration and Digital Push

SBI is prioritizing technological advancement as a key driver of future growth. The bank's strategy encompasses multiple dimensions including product development, process optimization, and strategic branch expansion in underserved markets. The digital transformation initiative aims to improve operational efficiency while enabling more effective manpower deployment for market share acquisition.

Consolidation Outlook in Public Sector Banking

Regarding consolidation in the public-sector banking space, Setty acknowledged room for further merger activities while emphasizing SBI's preference for organic growth. He noted that the timing and selection of banks for consolidation remains a government decision.

Interest Rate Environment and Deposit Strategy

The bank anticipates a pause in rate cuts during February, which would help protect exit margins for March 31, 2026. Setty observed different trends in deposit categories, with savings accounts maintaining stability while current account balances face challenges.

Deposit Performance Analysis

• Savings Accounts: Showing resilience and holding up well
• Current Accounts: Experiencing pressure due to government's just-in-time cash management implementation
• Strategic Focus: Shifting emphasis toward business current accounts to compensate for reduced government deposits

The chairman's comments reflect SBI's confidence in maintaining its growth trajectory through organic expansion while adapting to evolving market conditions and technological opportunities.

Bank of India has reported an increase in fresh slippages during the third quarter, with the figure rising to ₹10.90 billion compared to ₹8.90 billion in the previous quarter. This sequential increase highlights growing asset quality challenges for the public sector lender.

Asset Quality Performance

The bank's asset quality metrics show a deteriorating trend with fresh slippages increasing on a quarter-on-quarter basis. The following table summarizes the key asset quality indicators:

Impact on Banking Operations

Fresh slippages represent loans that have transitioned from the standard category to non-performing assets during the reporting period. This metric serves as a crucial indicator of asset quality deterioration and reflects the bank's lending portfolio performance. The sequential increase of ₹2.00 billion suggests heightened stress in the bank's loan book during the third quarter.

Quarterly Comparison

The quarter-on-quarter comparison reveals a significant uptick in asset quality stress. The increase from ₹8.90 billion to ₹10.90 billion represents a growth of approximately 22.47% in fresh slippages, indicating challenges in maintaining asset quality standards during the reporting period.

This development in fresh slippages will likely impact the bank's overall asset quality ratios and may influence provisioning requirements for the quarter. The trend reflects the ongoing challenges faced by public sector banks in managing their loan portfolios effectively.