'We open 65,000 savings accounts a day'

CHALLA SREENIVASULU SETTY, who took charge as chairman of State Bank of India (SBI) in August, says the conversion of net profit from operating profit is moving towards 70 per cent, which indicates culmination of efforts from all fronts. In an interview with Manojit Saha and Abhijit Lele in Mumbai, he says SBI is comfortable with liquidity with the overall credit-deposit (CD) ratio at a modest 68 per cent and the aim is to maintain the incremental CD ratio at 100 per cent. Edited excerpts:

- CHALLA SREENIVASULU SETTY

SBI's business was ₹90 trillion as on September 30. Advances were around ₹39 trillion and deposits ₹51 trillion.

When do you see the bank achieving a business of ₹100 trillion?

We have given the guidance of 14-16 per cent growth in advances, and on deposits, we expect lower double-digit growth of, say, 10 per cent. With the current run rate, I think by March 2026, we will be there, at ₹100 trillion. Probably, even before that.

You had said SBI could touch an operating profit of ₹1 trillion this financial year. When do you see net profit of ₹1 trillion?

It will take some time. We have a three-year horizon for reaching a net profit of ₹1 trillion. Our ambition is to be the first company to achieve it. Sooner or later, everybody will reach that milestone. It is not about chasing profit. This number establishes the potential of this organisation to generate and convert its operating profit into net profit. The conversion ratio of pre-provision operating profit into net profit is moving towards 70 per cent, which means any number on the PAT (profit after tax) side is a culmination of efforts of increasing core income, other income, reducing both financial cost and operating cost, and containing slippages. Profit after tax of ₹1 trillion also means achieving all these elements to create that net profit.

You took charge as chairman in August. What are your goals in the next three years?