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Our Bureau

Corporate segment offtake rising at a faster clip

Mumbai , Nov. 23

State Bank of India may overshoot its 30 per cent loan growth target for this fiscal. Currently, it is running at 35 per cent year-on-year.

The target may have to be revised upwards, said Mr Yogesh Agarwal, Managing Director (National Banking), SBI.

"There is every possibility that we may breach the loan growth target, as the busy season is yet to start. All segments are growing at the same rate as last year. But the corporate segment is growing a little faster," Mr Agarwal said.

However, there is no need to mark up lending or deposit rates, Mr Agarwal clarified.

The country's largest bank saw a growth of 21.18 per cent in advances at Rs 2,88,840 crore (Rs 2,38,351 crore), for the second quarter ending September 30.

According to the Reserve Bank of India's mid-term review, the non-food credit of commercial banks grew 30.5 per cent on a year-on-year basis as on October 13.

SBI's deposit growth is placed at 20 per cent and there is pressure on margins because of a rise in bulk deposits, Mr Agarwal said.

No liquidity pressure

There is no pressure on liquidity as SBI will not find it difficult to raise deposits, given its position as a market leader, he pointed out.

To widen its deposit base, SBI may raise interest rates for certain deposit products (not across the board) and focus on improving customer services, said Mr Sangeet Shukla, Chief General Manager, (Personal Banking).

More Stories on : Credit Market | Public Sector Banks | State Bank of India

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