sbi: To maintain 15% loan growth in current fiscal year, says SBI Chairman Dinesh Kumar Khara

0
The State Bank of India (SBI) said it expects to maintain credit growth of around 15% in the current financial year with growing demand from individuals and businesses despite the tightening of the lending rate. The country’s largest lender reported a 14.93% increase in advances to Rs 29,00,636 crore in the first quarter ended June 30, 2022, from Rs 25,23,793 crore in the same period a year ago.

Of this amount, personal loans recorded a growth rate of 18.58% while corporate advances improved by 10.57% year-on-year at the end of the June quarter.

SBI Chairman Dinesh Kumar Khara also said that the bank will soon only offer YONO which is YONO 2.0 with many more advanced features and functionalities.

“The bank’s digital leadership journey continues. Over 96.6% of transactions are now routed through alternative channels. Registered users on YONO have already crossed 5.25 crore, a significant milestone and one that has created significant value for the bank. Sixty-five percent of new savings accounts are opened through YONO,” he said recently in a conference call with analysts.

On maintaining credit growth at 15%, he said, “I hope the reason behind is some sort of term loan and also the underutilization of working capital, which is aggregating to nearly Rs 5 lakh crore, and the pipeline is almost Rs 1.2 lakh crore. So I’m hopeful that we will be able to maintain that over the next few quarters.”

The corporate pound is expected to reach around Rs 2.5 to 3 lakh crore over the course of the year, he said, adding that even in SMEs (small and medium-sized enterprises), there is traction and a pipeline is being created.

With the latest rate hike by the RBI, the repo rate (the short-term borrowing rate at which banks borrow from the central bank) rose to 5.40%, an increase of 140 basis points since May of This year.

On the current economic situation, Khara said the effect of the Covid pandemic has largely eased, thanks to the government’s massive vaccination program.

The economy is almost on track with the resumption of air travel and the removal of other containment measures by most countries, he said.

However, he said, the volatile geopolitical situation still poses a downside risk. Global production contracted in the second quarter of this year due to the economic slowdown in China and Russia.

India’s economy remains resilient despite global headwinds, leading to rising inflation, soaring crude prices, rising commodity prices and disrupted supply chains, he said.

Share.

About Author

Comments are closed.