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State Bank of India (SBI) is witnessing a definite improvement in corporate credit pick up in terms of utilisation of sanctioned working capital limits, according to Chairman Dinesh Kumar Khara.
Further, the pipeline of unavailed term loans is coming down.
The unutilised working capital limits of India’s largest bank are at about ₹2.76 lakh crore. There is an improvement in the drawdown of the limits, Khara told analysts.
Situation improving
Unutilised working capital limits are just about 46 per cent against almost 50 per cent at the end of the last quarter, he said, adding that the situation has improved.
“When it comes to the term loan, the unavailed limits are just about 19 per cent...Apart from that we have some kind of visibility of the proposals which are being processed by us. So, I think, that is the broad picture as far as the corporate book is concerned and that is very clearly reflecting the kind of offtake which we can get to see going forward,” the SBI chief said.
The Bank is having visibility of ₹4.60 lakh crore when it comes to corporate loans, Khara told reporters last week.
A senior SBI official told the analysts that the unutilized limit, which was in excess of ₹3.10 lakh crores as at end of December 2021, has actually come down to ₹2.76 lakh crores.
Unavailed term loans down
Similarly, the unavailed term loan, which was in excess of ₹2.10 lakh crores as at December-end 2021, is now down to ₹2 lakh crores. “So, the growth in the corporate book that that you have seen, a very big chunk of that has happened in the fourth quarter,” the official said.
The SBI chief emphasised that the bank has been constantly calibrating its lending strategies to maintain the quality of loan book, which is reflected in its corporate exposure, with 89 per cent of the book being an investment grade.
The bank’s corporate advances increased by 6.35 per cent year-on-year to ₹8,70,712 crore as at March-end 2022 against ₹8,18,705 as at March-end 2021.
In the analyst presentation, the bank observed that corporate credit growth continues to trend upwards.
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