3 Things To Know About CS Setty, the Incoming SBI Chairman For the next three years, Setty will manage the most important portfolios of the country's biggest lender

Challa Sreenivasulu Setty, also known as CS Setty, has been appointed as the 27th chairman of the State Bank of India (SBI). At present, he is the senior-most Managing Director (MD) at SBI, overseeing International Banking, Global Markets, and Technology verticals. On August 28th, he will officially take charge from the current chairman, Dinesh Kumar Khara. For the next three years, Setty will manage the most important portfolios of the country's biggest lender. As of 2024, he has been associated with SBI for over three decades in various capacities.

Humble Beginnings

Setty was born into a Telugu family on September 26, 1965, in Peddapothulapadu village, Jogulamba Gadwal district. According to sources, he was an outstanding student. He completed his schooling in Telugu medium government schools and holds a Bachelor's degree in Agriculture from Acharya N.G. Ranga Agricultural University, Andhra Pradesh.

"I have a BSc in Agriculture. In the three and a half decades of my career, nobody has ever asked me what I studied or what my rank was. But my academic grades have always given me confidence," said Setty in the media.

Lessons From Father's Grocery Store

Setty started his career with SBI in 1988 as a Probationary Officer. His first assignment was with the Baroda branch of the bank. Reflecting on his early experiences, he shared that at 12 years old, he gained real-life exposure to debt collection. His father owned a grocery store in a small village in Andhra Pradesh, and during school vacations, he and his brother would collect dues for the store. The 12-year-old Setty learned two important lessons on debt collection:

"One, the time value: How quickly you can recover money is important. Second, follow-up: I cannot stress the importance of this in recovering dues," said Setty.

Before assuming the MD position, Setty applied these two important lessons while handling the Stressed Asset Resolution Group (SARG). When SBI's gross NPA ratio was approximately eight per cent, the corporate book's NPA was close to 14 per cent. However, with his careful management, SBI's gross NPA is now 2.21 per cent, while the net NPA ratio stands at 0.57 per cent on a loan book of INR 38.1 lakh crore. The bank is now profitable and has delivered strong returns on assets (ROA) and equity (ROE) since FY19.

"When Setty was heading the vertical, recoveries began to improve. All this requires a deep understanding of how large credit works, and how the resolution framework operates," said a former SBI official.

A People's Person

Those who worked with Setty found him soft-spoken and friendly. Because of Setty's social and communication skills, he has a great network right from zonal offices to head offices.

"Setty has deep expertise in corporate credit, from assessing applications to underwriting loans. He believes in being prepared at all times. Even during the pandemic, he ensured that the bank stayed in touch with clients, particularly in the MSME segment, to gauge the likelihood of defaults and to extend credit support," another former SBI official explained.