SBI has won the Financial Powerhouse of the Year award at NDTV Profit Business Leadership Awards. Catch NDTV Profit's ...
What Challa Setty said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Challa Setty, Chairman of State Bank of India, discussed SBI's recognition as a financial powerhouse, emphasizing that the award reflects daily work across geographies and customer segments. He explained that as a jury member, he evaluated companies based on sustainability of economic value, not just short-term performance. Setty highlighted SBI's digital-first, customer-first approach, noting it manages 140 lakh crore in assets. On the FCNR scheme, he confirmed a good response, with SBI's share not less than its market share, and said banks benchmark to domestic funding costs. He praised corporate resilience despite disruptions like COVID and tariffs, but flagged concerns about rural consumption due to patchy monsoon and El Nino. On AI, he outlined SBI's focus on employee productivity, customer interactions, and fraud risk management, including agentic AI on the YONO app and a cyber security framework under IBA.
Key takeaways
SBI manages 140 lakh crore in assets under management, the largest in the financial system.
SBI's share of FCNR deposits will be at least its market share, with a good response across geographies.
SBI's first agentic AI deployment will be on the YONO app to enhance customer interactions.
Under IBA, SBI engaged with 25 OEM service providers to prepare a cyber security framework for member banks.
0:29When as a member of the jury you were looking at some of the other categories and you know we've shortlisted them as per data, what were some of the criteria that you thought about?
8:16The finance minister also spoke about the impact of El Nino and we have to wait and watch what happens, but what is the kind of impact typically that one would expect?
We are honored that the jury considered SBI recognized as the financial powerhouse. What is remarkable about this recognition is that it is a recognition for the work which we do every day across the country, across the diversified geographies, across the customer segments, to fulfill the aspirations of individual entrepreneurs, as I mentioned, to the largest corporate house in the country.
Yeah. We should also take this opportunity to tell our viewers and underscore that the categories and the nominees shortlist was based on core data. So this is performance of revenue, profitability, of course stock market performance among other things. So it is not any kind of subjectivity which lands someone in the nominee list and then of course the jury takes its pick. Just want to understand, sir, from you first I'll speak to you as a member of the jury and then of course on the honor. When as a member of the jury you were looking at some of the other categories and you know we've shortlisted them as per data, what were some of the criteria that you thought about?
So I think most of the companies were evaluated. For instance, if you take the most value accretive company, value creating company, it's a pretty competitive category, right, because the valuations are very dynamic. But what we applied as the filter is the sustainability of the economic value which is created for the stakeholder. I think it was evident in every category that it's not that you are judging, obviously of course when you are considering that the awards are for a particular period, you need to consider the period, but it's also I think a due weightage is given how sustainable this performance has been. It's not a flash in the pan kind of performance, but they truly created enduring value to the stakeholders. What was interesting, I think most of the jury members have put in decades of experience in their industry. But no, none of us really felt that we are trying to bring our own choices or assumptions into that. It purely went by the matrix which was given to us. Obviously when you are bringing your experience, you would have your own insights into what needs to be further evaluated. That was respected by all the jury members. I remember I was attending the jury meeting from New York at 5:00 in the morning. I'm sure a couple of other jury members were also in different parts of the world. But we felt that this is something we need to give some time and spend some time to choose the right winner out of the categories.
No, and we're most honored for this. Now once again, to being the financial powerhouse, the journey of SBI is obviously long. It's a very storied institution, but it's standing as a financial powerhouse on its own merit today. How do you think State Bank of India is competing in the banking system also against private sector banks which were for the longest time thought as sharper, more tech front-facing, and a better option in terms of customer-facing? That perception is changing now, isn't it? Yeah, one observation I've definitely had given to NDTV Profit is that if you are calling financial powerhouse, having a PSU non-PSU tag doesn't really matter.
And that I think repeatedly SBI was able to prove that irrespective of the ownership, it has invested in its people, it has invested in technology. Today our approach is digital first, customer first, and nation always. I think none of these objectives are mutually exclusive. We believe that they all hand in hand to ensure that every aspiration in the country is fulfilled. We command the largest market share. We almost manage with SBI and also the subsidiaries put together across the financial system. As we speak today, we manage 140 lakh crore assets under management, which means that we have a greater responsibility to the nation and to the fulfillment of the aspirations of people. So I call it as an institution which is moving towards purpose with profitability. I don't think any other organization has pursued these objectives as closely as SBI always has been.
And of course that is the mandate. Since I have you here with me, I must ask you, sir, about the response to the FCNR scheme that the government has announced recently. It was important to shore up the rupee as well, and the initial reports that we're hearing is that it's been quite a hit. Can you just explain the kind of response that is coming in and what you have seen at State Bank of India?
There's a good response. I won't be able to give the number right away, but I think we'll be giving the numbers as part of our quarterly numbers. But there's a good response across the geographies. We have the largest NRI customer base and we also have the largest physical presence outside the country, so it is helping us to mobilize. I'm sure that the numbers which were put out by RBI indicates the trajectory of the FCNR B scheme. It's fair to say quite a big share is with State Bank of India off that number.
We would definitely be not less than our market share. I can assure you on that. But it's not about the market share or the numbers. We believe that at this moment we all are working together to make this scheme very successful one.
