Citi India Conference 2026 | SBI Chairman CS Setty On India's Banking Outlook & Growth Strategy

Good morning everyone. Thank you, Citi, for this opportunity. We have a strong relationship with Citi across the 29 countries where we operate. Before discussing banking's role in Viksit Bharat, let me share a few personal reflections. I joined SBI in December 1988, and it has been a 37-year journey. In 1988, Indian banking was dominated by public sector banks, and the government wanted to introduce computerization. Unions resisted, so they offered a 'computer increment' to anyone who used a machine, and that kickstarted the revolution. A few years later, as a branch manager, a district collector walked in asking for a 20,000 rupee clean overdraft for his son's education. I had to refuse because we required deposits. Five years before liberalization, we took 400% cash collateral to open a letter of credit. Today, every segment—microfinance, SME, corporate—is being chased with seamless loans. Banking has been central to India's progress. Now, a very good morning to everyone at the Citi India Conference. This is a time of global geopolitical uncertainty, shifting supply chains, and technological disruption, but India stands out as a source of stability and opportunity. The vision for India 2047, the 100th year of independence, is to become a developed country with per capita income of $10,000. India's story is not just about catching up but emerging as a defining growth story of the 21st century. In two decades, living standards have more than tripled, and hundreds of millions have been lifted out of poverty. India is now the fastest-growing major economy, and the banking sector has been a critical partner in nation-building. The most distinctive feature has been the creation of world-leading digital public infrastructure, such as the JAM Trinity. UPI handles 200 billion transactions annually, with SBI handling 30% of that volume and a technical decline rate of just 0.1%. Social security coverage expanded from 19% to over 64% thanks to direct benefit transfers. Democratization of finance means 95% of microfinance borrowers are women, and nearly 80% live in rural areas. The sector's loan portfolio has grown sevenfold. Banks have also supported entrepreneurship and infrastructure. National highways expanded from 91,000 km to 146,000 km, and infrastructure lending from scheduled commercial banks rose from 9.6 trillion rupees to nearly 14 trillion rupees. Agricultural credit crossed 26 trillion rupees. Looking to 2047, we need to focus on rural prosperity, urban transformation, investing in people, and globally competitive manufacturing. The banking system must evolve with access, expertise, technology, ESG integration, and strong governance. Green finance is a defining opportunity, with energy transition requiring ~$2.2 trillion by 2047. India has already achieved over 50% of electricity demand from renewables, five years ahead of the Paris target. The global order is being rewritten, and India enters from a position of strength. The journey to 2047 will be challenging but compelling. India has demonstrated inclusion at scale; now we must transform inclusion into prosperity. The banking sector will be at the heart of this transformation—mobilizing savings, enabling entrepreneurship, and partnering in nation-building. Thank you. I'll take a few questions.

First, on AI: I believe India will provide the largest use cases and be the biggest beneficiary globally. The financial services sector is a microcosm of that. We are moving beyond conventional ML to generative and agentic AI. Healthcare and manufacturing are already adopting AI at scale. SBI was an early adopter of conventional AI—we launched a pre-approved personal loan driven by an ML model. We also adopted responsible AI before RBI guidelines. AI in banking will primarily drive efficiency at scale. With 530 million customers—ranging from 170 million financial inclusion customers starting with zero balance to ultra-high-net-worth individuals—AI enables hyper-personalization. That is central to technology adoption.

Capital investments globally have led to automation, and there is often a disconnect between capital invested and jobs created. But India has a strong services sector. While AI will initially impact services, I believe people can be reskilled. In IT, 99% of the workforce are engineers who can pivot quickly. We need skilled manpower to deploy AI itself, and the availability of such talent is a challenge. India has proven adept at re-pivoting—from simple BPO to world-class global capability centers. Productivity gains will create investment in areas that generate more jobs.

Currently, India is not focusing on crypto from a regulatory or government perspective. Instead, we are seriously focusing on central bank digital currency (CBDC) in both retail and wholesale segments. In a mature payment ecosystem, CBDC cannot be positioned solely as a payment mechanism. We are looking at programmable CBDC for targeted direct benefit transfers, which can be very effective.