State Bank of India's Kolkata Circle has achieved 18% credit growth in the current financial year, significantly outpacing the bank's overall 17% credit growth for FY26. According to R Natarajan, chief general manager of Kolkata Circle, this strong performance is driven by robust demand across multiple sectors including retail, corporate credit, micro, small and medium enterprises (MSMEs), and agriculture. The region operates 1,350 branches and contributes to SBI's overall operations with deposits growing at around 10%.
The new West Bengal government's business-friendly policies are creating an enabling environment that is driving increased credit demand, as reported by Natarajan. Key policy initiatives include a single-window clearance system that is expected to fast-track approval processes and attract new businesses. The government's focus on industry development is particularly benefiting existing businesses, which are seeing improved prospects in the state. This positive policy environment is complemented by the bank's own analytical tools, including the Business Rule Engine that provides go/no-go decisions for loan proposals.
The credit growth is being driven by multiple sectors showing strong performance. MSMEs continue to be a key focus area, while the steel industry and mining companies such as Coal India are also contributing to demand. The housing sector is experiencing significant activity with new projects emerging, though some government restrictions have been placed on this segment. Infrastructure financing is seeing substantial activity, particularly in warehousing, and agriculture financing is witnessing an uptick in investment credit demand.
Despite the strong branch network of 1,350 branches, digital adoption has significantly impacted transaction patterns. According to Natarajan, 98.4% of transactions are now happening through alternative channels, with the branch channel maintaining importance primarily for service delivery. The bank is focusing on consolidating branches where there is overlap to optimize its physical presence while maintaining adequate service capacity across the region.
The eastern region's performance in deposit mobilization shows mixed results compared to the bank's overall metrics. While the region's CASA ratio stands at 39.4%, which is lower than the bank's overall CASA ratio of 40.15%, both regions are experiencing similar savings bank growth of 10%. The bank is actively working with government officials to improve the credit-deposit ratio of the state, which is currently considered low and requires enhancement to support sustainable growth.
