Challa Sreenivasulu Setty Appointed Chairman Of State Bank Of India
Dinesh Kumar Khara has served as chairman of State Bank of India since October 2020
Challa Sreenivasulu Setty, the newly appointed Chairman of State Bank of India (SBI), steps into his role at a critical juncture, facing significant challenges as he begins his three-year tenure. His top priority will be to maintain the asset quality of the bank, which is currently at a decade-best level, while also ensuring that depositors continue to trust and invest their money with SBI.
Setty, who hails from humble beginnings in Peddapothulapadu village in Telangana, is a testament to how dedication and hard work can lead to the pinnacle of success. His educational journey began in Telugu-medium schools and later progressed to a bachelor’s degree in agriculture from Acharya NG Ranga Agricultural University. He also holds a certification from the Indian Institute of Bankers. Setty joined SBI as a probationary officer in 1988 and steadily rose through the ranks, eventually overseeing key verticals such as international banking, global markets, and technology as the senior-most Managing Director.
His appointment as the 27th Chairman of SBI was confirmed on June 29, 2024, by the Financial Services Institutions Bureau after interviews with him and two other Managing Directors, Ashwini Kumar Tewari and Vinay M Tonse.
Setty faces a formidable task on the liability side, where systemic issues need addressing. In the June quarter, the bank’s deposits grew by 8.8%, but the growth in low-cost Current Account Savings Account (CASA) deposits was only 2.6%. In contrast, term deposits grew by 12.2%, current account deposits declined by 4.64%, and savings deposits saw a modest 3.4% increase. Meanwhile, the bank’s assets and loans surged by 15.4%.
On a positive note, SBI’s non-performing assets (NPAs) are at an 11-year low, with gross NPAs at 2.21% and net NPAs at just 0.57%. The strong balance sheet left by outgoing Chairman Dinesh Khara will serve as a solid foundation for Setty. Khara’s tenure was marked by remarkable profitability, with SBI earning a cumulative net profit of Rs 1.63 trillion during his term, compared to Rs 1.45 trillion over the previous 65 years. Most notably, SBI recorded a standalone income of Rs 61,077 crore in FY24, making it the most profitable year in the bank’s history.
Setty now inherits the ambitious target set by Khara: achieving Rs 1 trillion in annual profit for SBI. As he begins his journey as Chairman, Setty’s ability to navigate these challenges will be closely watched by the banking industry and the nation.
