State Bank of India Expects Increased Demand for Corporate Loans in Infrastructure, Thermal Power Sectors

State Bank of India Seeks to Boost Corporate Loan Book

State Bank of India (SBI) has announced its plan to focus on sectors with prominent demand for corporate loans, including infrastructure, renewable energy, and thermal power. According to a post-earnings press conference, the lender aims to capitalize on the growing demand in these sectors to strengthen its corporate loan book.

The company's corporate advances growth for the quarter ended March saw a significant increase of 14.8 percent, surpassing the 9 percent growth recorded in the corresponding period last year. Infrastructure loans comprised at least 9 percent of the total credit book in Q4 FY26, down marginally from 11 percent in Q4 FY25.

SBI Chairman CS Setty noted that the demand for corporate loans is more prominent in public sector companies, while private companies are mainly driven by large firms. Setty emphasized the lender's cautious approach to corporate credit, even if it means accepting lower returns compared to the retail sector.

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The company's financial performance for the March quarter saw a 5.6 percent rise in standalone net profit to Rs 19,684 crore, up from Rs 18,643 crore in the previous corresponding period. SBI also declared a dividend of Rs 17.35 per equity share for FY26.

Comparison of Corporate Advances Growth

Share Performance

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Shares of SBI ended nearly 7 percent down, following the release of the profit figures, which missed analysts' estimates.