State Bank of India (SBI), Chairman, CS Setty, has said that the country’s largest public lender aims to become first financial company to make Rs 1 lakh crore net profit in next 3-5 years. The veteran banker said “We have potential to be the first company in India to reach that milestone.”
The state owned bank had reported net profit of Rs 61,077 crore in FY24. While, total revenue had stood at Rs 3.32 lakh crore in the concerned fiscal.
Rationale Behind Setty’s Conviction:
Setty sees strong growth coming up in the country. According to him, this will pave the way for large size banks to expand their business thick and fast. He has said that due to the government of India’s strong thrust on the manufacturing sector, the financiers in the country will get lot of opportunity to balloon up their loan book. This will in turn lead to increased business and profit of these firms.
In Budget 2024, the Finance Minister Nirmala Sitharam had proposed to hike government expenditure target to Rs 11.11 lakh crore which would be 3.4% of the country’s GDP.
The SBI Chairman said banks will also get financing opportunities not only due to public expenditure but also public expenditure. Setty expects private capital expenditure in India to pick up in the latter half of the current calendar year. This will throw open opportunities for providers of financing solutions which will inturn lead to expansion of loan books. Currently, SBI’s loan book size is Rs 35 lakh crore.
Which Companies Make Rs 1 Lakh Crore Annual Profit In India?
Currently, Reliance Industries Ltd (RIL) is the only country to have achieved its feet. According to its FY24 annual results, the oil to data conglomerate’s pre tax profit was in excess of this coveted mark. When it comes to profit, billionaire Mukesh Amani led Reliance Group is the only company in this club but when it comes to revenue, following companies report revenue of more than Rs 1 lakh crore:
Indian Oil Corporation, Gail India, Canara Bank, Bank of Baroda, Mahindra & Mahindra (M&M), Maruti Suzuki, Axis Bank, HCL Technologies, Grasim, Nayara Energy, etc
