SBI raises data centre exposure target to Rs 4,000 crore for FY26

SBI plans to lift data centre exposure to Rs 4,000 crore by March 2026 from Rs 2,800 crore in October 2025, while setting up specialist teams and reviewing margins amid NIM contraction

India’s largest public sector lender, State Bank of India (SBI), is targeting to increase its exposure in data centres from around ₹2,800 crore to ₹4,000 crore by March 2026, a senior bank official said.

 

It comes against the backdrop of Union Finance Ministry telling the public sector banks (PSBs) to be ready to embrace new business opportunities in order to improve the deposits growth.

 

“SBI is planning dedicated teams, specialised training, sector-specific credit rating models, and the hiring of expert consultants to support this expansion,” the official said.

 

“The finance ministry has advised PSBs to strengthen their preparedness to embrace new business opportunities and enhance compliance, including adherence to the large exposure framework,” he said.

 

An email sent to the SBI remained unanswered till time it was going to press.

 

India’s data centre industry has seen investments of nearly $15 billion since 2020 and is likely to attract $ 20-25 billion fund over the next six years, on rising demand, according to Colliers.

 

In its latest report, real estate consultant Colliers India said that India’s data centre capacity stands at 1,263 mw as of April 2025 across seven major cities, and the capacity is likely to cross 4,500 mw by 2030. The existing data centre real estate footprint stands at 15.9 million square feet, and this is expected to rise significantly, reaching about 55 million square feet by 2030.

 

“Apart from strengthening our growth pipeline, SBI is also undertaking a careful reassessment of its business portfolio in light of the ongoing NIM (Net Interest Margin) contraction,” a senior bank official said.

 

“We are reviewing segment-level profitability, recalibrating our asset mix, and prioritising areas that can deliver sustainable margins,” the official added.

 

The SBI’s NIM was 2.93 per cent for half year ending September 2025 (H1FY26). The bank’s cost of funds stood at 5.06 per cent, while the yield on advances was 7.95 per cent. SBI’s cost-to-income (C/I) ratio was 48.53 per cent.

 

The official further said that the bank is simultaneously advancing its preparedness for the full implementation of the Expected Credit Loss (ECL) framework.

 

“We are developing a robust, data-driven model for accurate ECL computation and ensuring that adequate reserves are built well in time. Collaboration -- both internal and with external experts-- will be crucial, as it ultimately protects the bank while benefiting all stakeholders,” the official noted.

 

SBI reported a 9.3 per cent year-on-year growth in global deposits as of September 2025 (H1 FY26). The bank’s current account (CA) deposits grew strongly at 17.9 per cent on year, while its savings account (SA) deposits increased by 6.4 per cent during the same period. SBI’s CASA (Current Account and Savings Account) ratio stood at 39.6 per cent of domestic deposits, placing it among the better-positioned public sector banks on low-cost deposits.

 

“In terms of productivity metrics, SBI achieved business per branch of ₹434 crore, the second-highest among PSBs, and business per employee of ₹41 crore, demonstrating strong operational efficiency across its network,” Official said.