According to State Bank of India’s Chairman CS Setty, the Union Budget 2025 is a comprehensive budget that addresses key aspects of consumption, development, and investment across all sections of the economy. Setty views the budget as a vital step towards meeting priority sector lending targets, particularly for micro, small, and medium enterprises (MSMEs). The budget is expected to provide a much-needed boost to SBI’s lending to these sectors, which the bank had previously struggled to meet due to regulatory requirements.
As part of the priority sector lending targets, all scheduled commercial banks and foreign banks with a significant presence in India are mandated to set aside 40% of their adjusted net bank credit for lending to these sectors. Furthermore, banks are expected to meet specific sub-sector targets, which include MSMEs. As the largest bank in India, SBI had previously faced challenges in meeting these targets, and the budget is expected to provide the necessary support to meet these goals.
Setty’s comments suggest that the budget’s focus on MSMEs will have a positive impact on the economy, as these businesses are a crucial driver of job creation, growth, and innovation. By providing targeted financial support, the budget aims to alleviate some of the challenges faced by MSMEs, enabling them to grow and expand their operations.
Overall, the Union Budget 2025 is seen as a significant step towards promoting economic growth, job creation, and development, particularly in the small and medium-sized enterprise sector. With its focus on priority sector lending, the budget is expected to channel more resources towards these sectors, fostering sustainable growth and development across the economy.