SBI's Remarkable Turnaround: From Losses to $100 Billion Triumph
The State Bank of India (SBI) has surged from losses in 2018 to becoming a $100 billion company, thanks to crucial regulatory reforms by the Reserve Bank of India. These transformations, including the Insolvency and Bankruptcy Code, have rejuvenated the banking sector, enhancing asset quality and economic stability.
- Country:
- India
In a transformation marked by remarkable growth, the State Bank of India (SBI) has ascended from financial losses in 2018 to becoming a $100 billion giant as of 2025. This significant rebound, highlighted by Governor Sanjay Malhotra at the SBI Banking and Economics Conclave in Mumbai, underscores the impact of regulatory and structural reforms executed by the Reserve Bank of India (RBI).
Governor Malhotra attributed this turnaround to key policies such as the Insolvency and Bankruptcy Code (IBC) introduced in 2016. The code, along with resolution mechanisms under the Pursuant Resolution Paradigm, has reshaped India's credit culture by promoting borrower discipline and enhancing asset quality across the banking system.
This evolution in the banking sector has been accompanied by broader macroeconomic reforms, including flexible inflation targeting and capital account liberalization. Reforms driven by the principles of recognition, resolution, and recapitalization have strengthened banks' foundations, effectively navigating the financial system through past challenges.
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