Current account deposits, retail asset quality challenges for new SBI chair

Maintaining loan growth momentum, protecting margins may not be easy as interest rate cycle changes

The banking system in India is healthy, well-capitalised, and bad loans are under control. State Bank of India (SBI)—the country’s largest lender—reflects this robust health of the system, reporting a net profit of Rs 61,077 crore in 2023-24, following Rs 50,232 crore in the previous year. The gross and net non-performing asset (NPA) ratios stood at 2.21 per cent and 0.57 per cent, respectively, as of June 30.

Challa Sreenivasulu Setty, who takes charge as the chairman of the country’s largest bank on Wednesday, still has to address a few challenges.

The first is deposit