SBI Housing Loan Portfolio: State Bank of India (SBI) Chairman CS Shetty said that the bank’s housing loan portfolio has crossed Rs 9 lakh crore last month and he is confident that the overall loan growth in the current financial year will be 14 percent due to the ongoing boom in the retail, agriculture and MSME (RAM) sectors.
What do the figures say?
The RAM segment has crossed the Rs 25 lakh crore mark in September itself. In view of the improvement in economic growth, SBI has increased the loan growth target for the current financial year from the earlier 12 percent to 14 percent.
In an interview with PTI, Shetty said, “We have increased the loan growth forecast. Now it is 12 per cent to 14 per cent. We see strong loan growth, especially in the RAM segment.
Growth in MSME sector
“The MSME sector is growing by 17-18 percent and agriculture and retail by about 14 percent.” He said that gold loans are also registering good growth, while unsecured personal loans will see double digit growth. The corporate loan segment, which was sluggish for some time, also seemed to be gaining momentum again in the second quarter and registered a growth of 7.1 percent.
Expectation of rise due to cheap interest rates
“Our estimate for corporate credit is in the low two digits. Thus, it is entirely possible to achieve overall credit growth of 12-14 per cent,” Shetty said. Further reduction in the policy interest rate by 25 basis points by the Reserve Bank will make loans cheaper and will boost new demand.
He has expressed hope that loans will become cheaper due to reduction in repo interest rates. Due to which the demand will be expected to increase and there will be a rise in all types of loans including home loans.
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