SBI Chairman CS Setty on AI, Credit Growth, and Banking's Future at Davos 2026

• SBI expects strong credit growth of 12-14% in coming years, despite shifts in funding patterns and deposit mobilization.
• The bank is preparing for a structural change in balance sheets, increasing reliance on market borrowings alongside deposits.
• SBI is scaling up AI capabilities, focusing on building AI at scale for transformative use cases like fraud management and hyper-personalized offerings.
• A rate cut is anticipated in 2026, but deposit rates are likely to remain sticky due to robust credit growth.
• Foreign direct investment (FDI) into the Indian banking system is seen as a positive development, indicating confidence and regulatory support.

Why It Matters: SBI anticipates strong credit growth, structural balance sheet changes, and significant AI adoption in banking's future.