Setty's comments come as the country is reeling under high energy prices amid a large drawdown in energy inventories and lingering geopolitical risks.
Mumbai: State Bank of India (SBI) chairman CS Setty on Wednesday said the economic growth process will stabilise if the RBI opts for a status quo in policy rates amid rising risks to inflation.
Setty's comments come as the country is reeling under high energy prices amid a large drawdown in energy inventories and lingering geopolitical risks. The Indian Meteorological agency IMD has projected a below normal monsoon for 2026, in midst of expectations of a strong El Niño occurrence which may lead the RBI to raise its FY27 inflation forecast, while adding downside risks to growth.
Speaking at the Citi 2026 India Conference, Setty said, "Broadly, the market expects that there could be a rate pause at this juncture. Inflation dynamics remain important, but I think a pause would definitely help stabilise conditions and ensure smooth growth.
” On a question on M&A financing, Setty said that the lender works with all foreign banks and Indian banks in terms of creating collaborations for M&A financing and has already done a few deals together.
"Yes, we already have. We have done one (M&A deal) already.First of all, we put the system and also the team in place. The team is working now. And we have done one transaction, we are doing another one. And I am sure that I think we will play an important role.
" Setty said the market debut for SBI's asset management arm is on track for this calendar year.
He called on banks to support India's aspirations, the future banking model must be built on a few key pillars, such as ensuring access to banking services across every segment, building institutional expertise, developing a deeper understanding of evolving customer needs, and leveraging technology, data and artificial intelligence.
The pillars need to integrate environmental, social, and governance considerations into financing decisions and operations, and maintain the highest standards of governance, consumer protection, and risk management, he added.
