New Delhi, Feb. 6 -- Private sector capital expenditure has begun to pick up, though not so much in core sectors such as steel, State Bank of India chairman C.S. Setty said. However, SBI's corporate credit pipeline remains strong, and the Union budget's effort to raise consumption should prompt industries with capacity utilization close to 75% to expand, he said.

"Private capex is definitely happening. But I think private capital expenditure in the core sector, particularly steel, is yet to pick up," Setty said at an analysts' call after the bank's December quarter earnings release.

Banks are keeping a watch on the global tariff landscape, he said, after the US unveiled tariffs against three of its top trading partners. "If you see, the...