We want to keep the CASA ratio at 40%, deposit growth rate of 10%: SBI Chairman CS Setty

The State Bank of India (SBI) is targeting to keep its current account savings account (CASA) at 40% and deposit growth rate at10%, the public-sector bank’s chairman CS Setty said.

SBI’s bank deposit rate grew at 9.81% year-on-year (Y-o-Y) to Rs 52.3 lakh crore and CASA ratio stood at 39.20% as on 31st December 2024. “We cannot expect CASA ratio to be like Covid time where it went up to 45%.The trend of low CASA rate is here to stay as people have adopted investment culture but post budget there will be some increase in disposal income after savings on tax, our assumption is it will partly go on consumption, deposits and investments as there is large number of customers which are in 12 lakh income bracket.”

SBI Chairman said that the bank would also achieve a credit growth of 14-16% in FY25, driven by corporate and retail loan growth. The company has a loan book worth Rs 4.83 lakh crore, of which Rs 2.2 lakh crore in sanctioned loans across 800 proposals, and Rs 2.61 lakh crore is under process. SBI's overall credit growth stood at 13.49% in Q3FY25 compared to the same period last year. He said that the private sector capital expenditure has begun to pick up but in core sectors such as steel it’s yet to see expansion.

Setty said the bank may not be able to sustain the 84% net-profit growth of 84%. “While we have improved on every parameter, the substantial jump of 84% in profit is also because there was a one-time exceptional item in Q3FY24,” Setty said.

On the recent US Tariff war impact on India he said that “We will have to see, there could be a positive side to it,  moreover export base of India is very diversified, in terms of geography and also in terms of product profile, so I don’t see immediate impact of tariffs and our exports to us is not very high but general environment does create some volatility.”

Lastly, pushing the digital agenda, the management said more than 8.45 crores customers of SBI have been registered on YONO app, the digital banking portal of SBI and over 64 % of the bank accounts were opened digitally through YONO in FY25.