CS Setty, Chairman, SBI, says the bank should be able to reach an operating profit level of R5 1 trillion this year. The macros are playing well and credit growth is coming out across the segments and their efforts to mobilise the deposits have paid dividends in Q2. As the bank's base increases, from Rs 39 lakh crore at present, a 15% growth rate on the domestic book seems to be a feasible option.

What is your medium-term goal?

CS Setty: Our medium-term goal is to become the first RS 1-trillion net profit company in the country. We are aspirational about that.The run rate indicates that we should be able to reach that operating profit level of Rs 1 trillion this year. The macros are playing well and credit growth is coming out across the segments and our efforts to mobilise the deposits has paid dividends in Q2. 

We have registered good growth and we were able to contain the cost of deposits also, which means that we are probably heading towards one trillion rupee operating profit.

Your credit growth is around 15%. It is towards the higher end of what you have projected earlier. But one of the things which caught my attention was your corporate loan book. What is happening here? 

Which are the sectors where this credit growth is happening?

CS Setty: There are several sectors where growth is happening. Petrochemicals is one area which we have grown significantly. We have also grown in the road sector. The road sector has been a mainstay of infra financing. Some of the road sectors are essentially the new roads which are coming in, as well as the completed road projects moving into the InvIT.

At the InvIT level financing also we have done significantly higher which is basically a cash flow-based lending, take out fnancing for the project financing and we see a good number of projects coming in the solar space, In the renewable space, whether it is solar, wind or hybrid.

The guidance is intact at 14% to 16%. Is it more towards 16% than 14%?

CS Setty: 16% is somewhere in the median. 15% seems to be a more reasonable estimate. As our base increases, currently we have Rs 39 1akh crore and 15% growth rate on the domestic book seems to be a feasible option.

Deposits have grown over 9%. What are you aiming for here? Do you think that with this kind of base, a double-digit growth is possible this year?

CS Setty: Double-digit growth is something we are aiming for. We have already achieved double-digit growth in the term deposits, which are almost Rs 25 to 26 lakh crore. On that basis, we are able to grow at double-digit, 12% is growth rate what we have achieved in retail term deposits.

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