State Bank of India (SBI) expects corporate loan growth to reach double digits in FY26, supported by a robust Rs 7 lakh crore pipeline of sanctions. Rising demand for working capital, term loans, and project financing is driving momentum, signaling renewed corporate confidence and economic expansion.
Inside the announcement
According to News18, NDTV Profit, Economic Times, and Daily Excelsior, SBI Chairman C.S. Setty confirmed that corporate credit demand, which had slowed in recent years, has picked up pace. Corporate loan growth stood at 7.1% in Q2 FY25, and the bank anticipates lower double-digit growth in the coming quarters, aided by sanctioned but unutilized limits and new projects under discussion.
Notable updates
- Loan pipeline: Rs 7 lakh crore in sanctions, including unused working capital and term loans
- Growth trend: Corporate credit grew 7.1% in Q2 FY25, reversing earlier sluggishness
- Economic push: Rising activity driving higher utilization of working capital each quarter
- Project financing: Several new projects under discussion to sustain credit momentum
- Guidance: SBI expects corporate loan growth in the lower double digits over FY26
Major takeaway
SBI’s outlook highlights a revival in corporate credit demand, positioning India’s largest lender as a key driver of growth. With a strong pipeline and rising utilization, the bank is set to play a pivotal role in financing infrastructure, industry, and economic expansion in FY26.
Sources: News18, NDTV Profit, Economic Times, Daily Excelsior