SBI Projects Strong Private Sector Capital Expenditure Boost Amidst Fiscal Year

SBI Chairman C S Setty reveals a Rs 4 lakh crore strong credit pipeline, indicating significant private sector capital expenditure in the latter half of the fiscal year. Government’s capital expenditure target has been raised by 11.1 per cent for 2024-25. Setty confirms SBI's subsidiaries currently do not require additional parent capital.

SBI Chairman C S Setty has announced that the bank has procured a Rs 4 lakh crore robust credit pipeline from Indian corporations, expressing optimism about a significant uptick in private sector capital expenditure in the second half of the fiscal year.

'We observe considerable interest in private capital expenditure. Infrastructure financing is primarily driven by sectors like roads, renewable energy, and refineries,' Setty said in an interview with PTI.

Concerning public spending, Finance Minister Nirmala Sitharaman proposed elevating the capital expenditure target by 11.1 per cent to Rs 11.11 lakh crore for 2024-25, which is 3.4 per cent of the GDP. Setty noted that some corporates have already undertaken brownfield expansions funded by their cash accruals but are now seeking term loans.

He emphasized that while private capital expenditure is set to rise this year, renewed government spending following a general election-related first-quarter slowdown will further boost capex during the fiscal's latter half. On SBI's subsidiaries, Setty mentioned no current plans for divestment or additional capital infusion from the parent company.

(With inputs from agencies.)