The Hindu Business Line : SBI sees slowdown in personal loans

Mumbai, Dec 11 State Bank of India is seeing a slowdown in the personal loan segment of about 5-10 per cent in the second half. However, growth in the retail segment has picked up in the second half after a sluggish first half, said Mr Sitaramam Komaragiri, Deputy Managing Director and Group Executive, National Banking, State Bank of India.

“The decline is not steep and it is only in the personal loan segment. There has been no slowdown in home loans. Even auto loans are fine,” he said.

He was speaking to reporters on the sidelines of a press conference to announce the launch of fund transfer using debit card.

The delinquency rate in the personal loan segment is about 3-4 per cent, he added.

Speaking about deposit growth in the same period, Mr Sitaramam said it has been very high, at about 25-26 per cent, over the last year.

SBI is looking to increase its non-interest income through new initiatives like fund transfer through card, acquisitions of point-of-sales machines and new businesses like general insurance, pension fund and venture capital funds, said Mr Deepak Chawla Deputy Managing Director, Corporate Strategy and New Businesses, SBI.

“In 2008-09 we will start custodial business, general insurance and also set up the SBI Venture Capital Fund. We already have large network and customers,” he said.

The bank’s pension fund is also likely to be operational within 3-4 months, he added.

Money transfer facility

SBI today launched money transfer facility through debit card in association with MasterCard. Using the MoneySend facility, debit cardholders of SBI can transfer money to other MasterCard holders, either debit or credit card.

The recipient can be an account holder of any other bank. Customers can transfer money through ATM, Internet, branch banking or mobile phone.

The unique aspect of MoneySend is the instant verification after the transaction is complete, said Mr Nitin Gupta, general manager, South Asia, MasterCard Worldwide.

As money is transferred directly from the account of the sender and goes directly to the account of the receiver, the fund transfer takes care of issues related to safety and transparency, he added.

The charges are Rs 20 for transactions up to Rs 25,000 and Rs 30 for transactions between Rs 25,000 and Rs 50,000. The maximum amount that can be transferred per day is Rs 50,000.

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