SBI Chairman C S Setty announced that the bank will use a cautious strategy for funding mergers and acquisitions, a move recently sanctioned by the Reserve Bank. The bank, known for its careful approach, aims to gradually expand into this new vertical while prioritizing risk management.

Setty conveyed to PTI that SBI's approach will resonate with its earlier strategies, like in the home loan segment. With the Reserve Bank's new draft guidelines allowing banks to fund strategic equity stakes, SBI plans to lend up to 70 percent of the acquisition value, fostering collaborative ventures with multinational banks.

Setty also expressed confidence in the bank's capability to achieve a 3 percent net interest margin, despite recent policy rate cuts. With plans to drive credit growth through secto

See Full Page