State Bank of India is preparing to expand its loan recovery operations with plans to recruit between 3,000 and 4,000 employees over the next year as the country’s largest public sector lender focuses on tighter underwriting and asset quality management.
As per The Moneycontrol report, CS Setty, Chairman of State Bank of India, said the bank is introducing a stronger collection mechanism after revamping its underwriting systems. According to Setty, the proposed recruitment drive will focus specifically on loan collection activities.
He noted that the new workforce will largely operate in the field rather than from branches. The employees are expected to be hired through SBI’s subsidiary network while remaining centrally managed by the bank.
SBI’s total employee strength stood at 2.45 lakh at the end of FY26 compared with 2.36 lakh in the previous financial year.
The hiring initiative comes as SBI reported its lowest non-performing asset levels in nearly 2 decades.
For the March quarter, the bank’s net NPA ratio declined to 0.39% from 0.47% a year earlier, while gross NPA improved to 1.49% compared with 1.82% in the corresponding period last year.
CS Setty said the objective of the strengthened collection system is to ensure that early-stage stressed loans do not enter the bank’s core loan book.
He also highlighted the impact of the Reserve Bank of India’s expected credit loss (ECL) framework, under which banks are required to maintain provisions even for Special Mention Account-1 (SMA-1) loans.
SBI has been tightening its credit underwriting standards and improving risk monitoring processes over the last few years as loan growth across the banking sector remains strong.
The bank had earlier established the Stressed Assets Resolution Group (SARG), a specialised vertical focused on resolution of high-value stressed assets and NPAs.
On May 8, SBI reported standalone net profit of ₹19,684 crore for the March quarter, recording a year-on-year growth of 5.6%. The bank also announced a dividend of ₹17.35 per share.
However, quarterly earnings came below market expectations due to pressure on margins and operating profit.
As of 12 May 2026, at 9:30 AM, State Bank of India share price is trading at ₹974.50 per share, reflecting a gain of 0.092% from the previous closing price.
SBI’s planned expansion of its loan collection infrastructure reflects the bank’s increasing focus on proactive risk management and long-term asset quality preservation as credit growth accelerates across the financial sector.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 12, 2026, 10:02 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
