SBI hits $6B of $10B RBI-backed deposit target
What's the deal? State Bank of India (SBI)Dealroom has a profile for this one. Try Dealroom → has raised $6 billion towards a $10 billion (about ₹1 trillion) target under a special deposit scheme backed by the Reserve Bank of India (RBI)Dealroom has a profile for this one. Try Dealroom →. The programme uses Foreign Currency Non-Resident Bank, or FCNR(B), deposits.
Why now? Chairman C.S. Setty says the raise will help SBI rely less on expensive bulk deposits. It also supports the bank's expectation of 14% to 15% credit growth in FY27.
What's the endgame? The new deposits are a small slice of SBI's ₹60 trillion base, but Setty says they will still fund more lending. He points to rising demand in retail, agriculture, and renewable energy.
The numbers: SBI's net profit rose 10.2% last quarter to ₹21,121 crore. Gross advances climbed 18.6% year-on-year to ₹50.5 trillion, and net interest income posted double-digit growth.
The signal: Cheaper foreign-currency funding lets India's largest lender chase double-digit loan growth without leaning on costly bulk deposits — a lever more banks may pull as credit demand widens across the economy.
Read more: NewsBytes
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