FY25 Outlook: Banking Leaders On PSU Banks' Future

Indian banks, particularly state-owned ones, experienced their best fiscal year in 2024, marked by robust growth and a decade-low in bad loans. SBI expects to maintain a credit growth rate of 14%-16% in the current fiscal year, according to Chairman Dinesh Khara during a post-results conference. The bank reported domestic loan growth of 16.26% and overall growth of 15.24% at the end of March. Debadatta Chand, MD & CEO of Bank of Baroda, expects loan growth of 12%-14% in FY25, stating that the overall scenario is quite positive. Atul Kumar Goel, MD & CEO of PNB, projects a credit growth rate of 11%-12% for FY25. K. Satyanarayana Raju, MD & CEO of Canara Bank, anticipates deposit growth of 10%-11% and believes advances growth may exceed 12%. A.K. Srivastava, MD & CEO of Indian Overseas Bank, forecasts credit growth of 13%-14% this year and expects profit growth to continue in FY25.