Rate pause by RBI will support growth stability: SBI Chairman

Mumbai, Jun 3 (PTI) State Bank of India chairman CS Setty on Wednesday said the economic growth process will stabilise if the RBI opts for a status quo in policy rates amid inflation challenges.

Speaking at the Citi 2026 India Conference, Setty said market expectations broadly point towards a pause in rates.

“Growth and inflation dynamics are more important. I think a pause will definitely help us to stabilise in terms of ensuring that smooth growth rates are achieved,” he said.

A majority of 11 of the 15 respondents in a PTI poll of economists and treasury participants are expecting the RBI to continue with the status quo on rates.

Most of the respondents expect the central bank to resume policy tightening later in FY27 amid mounting inflation

risks.

When asked about the proposed initial public offering (IPO) of SBI Funds Management, Setty said the company is targeting a listing during the current calendar year.

“We hope to do it sometime during this year. We are just waiting for the report,” he said.

He further said SBI Funds Management has already filed its draft papers and is awaiting regulatory approvals.

“We have already filed the DRHP… we are waiting for the approval,” he said.

He added that for banks to support India’s aspirations, the future banking model must be built on a few key pillars, such as ensuring access to banking services across every segment, building institutional expertise, developing a deeper understanding of evolving customer needs, and leveraging technology, data and artificial intelligence.

The pillars need to integrate environmental, social, and governance considerations into financing decisions and operations, and maintain the highest standards of governance, consumer protection, and risk management, he pointed out. PTI MSU AA BAL BAL