Despite only having a 4% credit growth rate in H1, SBI is confident in its goal of a 14–16% credit growth rate in H2.

The State Bank of India (SBI) is optimistic that it would meet its goal of a 14–16 percent credit growth rate in H2FY25, despite a 4 percent credit growth rate in the first half of the year. According to management, the focus on dealer and vendor financing in SME loans and the continuance of the second-half increase in personal loans are the causes. Challa Sreenivasulu Setty, the chairman of SBI, stated during its Q2FY25 results conference call that the bank is witnessing a surge in personal loans and anticipates it to continue in the second half of the year as well. According to Setty, agricultural loans did well in the first quarter of FY25 despite obstacles including intense rainfall. In addition to crop loans, he added the bank now offers agri-infrastructure loans, loans for self-help organizations, and agri-gold loans, among other agricultural credit products. According to him, the bank's agricultural finance is also being improved via specialist agricultural credit processing centers (Agri CPCs) and committed relationship managers. Growth in this industry is anticipated as a result of the bank's emphasis on several types of SME lending, such as dealer and vendor financing, according to Setty. Setty also highlighted the bank’s focus on advancing digital lending platforms to streamline the loan application and approval process. With an increase in digital adoption, SBI aims to simplify access to credit for both retail and SME customers, thereby increasing loan disbursements. This shift is expected to bolster customer convenience and attract a wider client base as the bank continues to innovate in digital financial services. The push towards digital lending is part of SBI's broader strategy to modernize its offerings and compete more effectively in the evolving financial landscape. The chairman pointed out that SBI is also concentrating on expanding its home loan portfolio, which has seen substantial demand. The bank has introduced tailored home loan products to attract new homeowners and existing homeowners seeking to refinance. As housing markets in urban and semi-urban regions continue to grow, SBI aims to capture a larger share of this segment, thereby contributing to the anticipated growth in its credit portfolio for the second half of FY25. In addition, SBI is intensifying its efforts to support self-help groups (SHGs) and rural enterprises through targeted loan products. These programs are designed to empower rural communities and promote financial inclusion across India. Setty explained that SBI’s rural credit initiatives are aimed at fostering sustainable growth in rural areas, helping small businesses thrive, and supporting local economies. With dedicated resources and specialized loan products, the bank aims to strengthen its position as a key financial partner in rural development. The bank’s management further elaborated on its risk management framework to ensure stable credit growth. Given economic uncertainties, SBI is implementing a cautious approach in specific sectors, while expanding in others with promising growth potential. This strategic allocation of resources across sectors, coupled with stringent credit assessment protocols, reflects the bank's commitment to maintaining asset quality. The balanced approach is expected to drive sustainable growth and align with SBI's long-term objectives for FY25 and beyond.