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Informist, Monday, May 11, 2026

 

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--SBI Setty: Nature of deposits coming back to banks now is different 
--CONTEXT: SBI Chairman CS Setty speaking at CII Summit in New Delhi 
--SBI Setty: Must deepen bond market to boost financing in economy 
--SBI Setty: Need to diversifying funding 
--SBI Setty: Need INR 3,000 tln-INR 3,500 tln funding for developed econ goal 
--SBI Setty: Public capex crowding in private investments 
--SBI Setty: India infra financing model changing, developing 
--SBI Setty: InVITs, REITs going to be important infra financing instruments 
--SBI Setty: Corp bond market remains shallow in India 
--SBI Setty: MSMEs, entrepreneurs new engines of credit growth 
--SBI Setty: Deepening of corp bond mkt necessary to meet developed econ goal 
--SBI Setty: MSMEs top segment of credit growth for banks 
--SBI Setty: Much remains to be done in MSME funding 
--SBI Setty: Moving Jan dhan accounts to new pdts biggest potential for bks 
--SBI Setty: India needs big pool of patient capital 
--SBI Setty: Pension funds must flow into long-term investment 
--SBI Setty:India development journey, climate transition must flow together 
--SBI Setty:Conventional power sources attracting finance besides renewables 
--SBI Setty: Mobilising long-term domestic savings is key for financing 
--SBI Setty: Seeing good quality energy projects 
--SBI Setty: Need unified climate finance taxonomy 
--SBI Setty: Transitional finance framework key for financing green projects 
--SBI Setty: New underwriting model using tech creates newer risks 
--SBI Setty: Banks must strengthen resilience frameworks 
--SBI Setty: Banks must continue to strengthen governance frameworks 

 

NEW DELHI – India will need capital of INR 3,000 trillion to INR 3,500 trillion to achieve the goal of becoming a developed economy by 2047, State Bank of India Chairman C.S. Setty said Monday. Of this, nearly INR 650 trillion will need to be realised by 2035, he said.

 

"These numbers are very very significant," Setty told the Confederation of Indian Industry's Annual Business Summit in New Delhi. "This highlights both the scale of the opportunity and the urgency of building a deeper and broader financial system."

 

A key source of funding would be the corporate bond market, which remains shallow compared with other countries, Setty said. A deeper corporate bond market is necessary not only to boost financing in the country but also to meet the goal of becoming a $30 trillion economy by 2047, he said.

 

India needs a big pool of patient funding and also more diverse sources of funding, Setty said, adding that more participation by mutual funds, insurance companies, and pension funds is required. 

 

Mobilising long-term domestic savings remains key for financing, Setty said. The nature of deposits coming back to banks now is different, with households increasing investment in mutual funds, insurance, and pension funds, he said.

The model for financing infrastructure in India is changing and developing, with infrastructure investment trusts and real estate investment trusts becoming important financing instruments, the SBI chairman said. Public capital is also crowding in private investments.

 

India's development journey must flow together with climate transition, Setty said. The renewable energy sector is attracting capital but so is the conventional power sector, he added. "We are seeing good quality energy projects," he said.

 

India needs a unified climate finance taxonomy and a transitional finance framework, which would be key for financing green projects, Setty said. The SBI chairman said banks must strengthen resilience and governance frameworks, adding that technology-driven underwriting models create new opportunities but also new vulnerabilities.

 

Setty called micro, small, and medium enterprises and entrepreneurs the new engines of credit growth in India. For banks, these enterprises are becoming the top segment of credit demand, he said. However, much remains to be done in micro, small, and medium enterprise funding, he added. Moving Jan Dhan accounts to new products offers great potential to banks for growth, he said.  End

 

Reported by Shubham Rana, Priyasmita Dutta, and Sagar Sen

Edited by Rajeev Pai

 

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