SBI Prioritizes Internal Profits, AMC Divestment for Capital Strength: CS Setty

• SBI Chairman CS Setty confirmed the bank is well-capitalized, relying on strong internal capital accruals and profit generation, not fresh capital infusion.
• SBI is on track to divest a stake in SBI AMC by CY26 via an IPO, with SBI selling 6.3% and Amundi India Holding 3.7%, totaling 10%.
• The AMC divestment will further boost SBI's capital buffers and strengthen its balance sheet, supplementing internal accruals.
• Setty addressed the loan-to-deposit ratio, noting changing household savings towards non-bank channels, requiring banks to increasingly use market borrowings.
• Foreign investors show increased confidence in India's banking sector, willing to bring substantial capital, enabling banks to scale operations.

Why It Matters: SBI is financially robust, leveraging internal profits and strategic divestments like SBI AMC to fuel growth and strengthen capital.