SBI Hopeful of Home Loans Touching Rs. 10 Lakh Cr in 2 Years
SBI for the fourth quarter ended March 31, 2025 on Saturday reported 10 per cent drop in net profit at Rs 18,642 crore as compared with Rs 20,698 crore in the year ago period due to higher provisions
Mumbai: The country’s largest lender State Bank of India (SBI) has cut its credit growth for this year even as it is targeting a home loan book of Rs 10 lakh crore by FY 27. The lender believes that the tax benefits announced in the Budget, rising income levels and interest rate cuts by the Reserve Bank of India would provide a boost to home loans.
CS Setty, chairman SBI told reporters at its Q4FY25 earnings press conference, “Predominantly the housing loans and SME are going to do well. We have grown 14.46 per cent in housing loans and reached Rs 8.3 trillion and we believe that in this current growth rate by FY27 we will be reaching Rs 10 trillion. So, which means that the housing loan segment is still doing well. And with the income levels going up, tax benefits announced in the Budget and the moderation in interest rates itself will further spur the people to go for home loans.”
Giving a breakup of the credit growth target, Setty said, SMEs will continue to grow at 16 to 17 per cent, home loans are expected to grow at 13-14 per cent which is quite possible, in corporate credit growth we saw significant repayments this quarter so there we will come back to 12-13 per cent growth rate.
The lender has pruned its credit growth target to 12-13 per cent for 2025-2026 compared to its earlier target of 14-16 per cent admitting that there will be an impact of the tariff wars on the credit growth.
He said companies will go slow on their investment plans because of the uncertainties in the global economy induced by the shifts in trade policies, which will impact credit growth. At present, SBI has a corporate loan pipeline of Rs 3.4 lakh crore.
The Bank expects deposits to grow by 9-10 per cent this year.
The bank is going to launch a major recruitment drive in the financial year 2025-26, with plans to add around 18,000 new professionals across various departments. This includes the recruitment of around 3,000 officers for key roles such as Probationary Officer (PO) and Local Bank Officer (LBO), 13000 to 15000 clerical posts, and 1600 system officers.
SBI for the fourth quarter ended March 31, 2025 on Saturday reported 10 per cent drop in net profit at Rs 18,642 crore as compared with Rs 20,698 crore in the year ago period due to higher provisions. The bank has reported advances increased 12.03 per cent year on year to Rs 42,20,703 crore and deposits grew 9.48 per cent YoY to ₹53,82,190 crore. The Gross NPA for the quarter was down 8.78 per cent to ₹76,880 crore.
