SBI Credit: SBI aims to keep the non-performing loan ratio below 1% | Rare Techy


State Bank of India, the country’s largest lender, expects to maintain its current pace of loan growth while aiming to keep its net lending ratio below 1%, its top executive said on Wednesday.

After announcing results for the June-September quarter earlier this month, the bank said it expects loan growth of 14%-16% for the current financial year as it steps up efforts to attract deposits.

According to the latest data from the central bank, as of November 4, Indian banks recorded an overall credit growth of 17%, while deposits growth was 8.25%.

“As long as the risk is well understood and priced, there is no problem (in maintaining credit growth),” SBI President Dinesh Kumar Khara told reporters. This also gives us confidence that the path we are on is sustainable.”

SBI has a term loan pipeline of 2.5 trillion rupees ($30.6 billion) and expects demand from all sectors, Khara said.

The borrower’s net non-performing loan (NPA) ratio fell to 0.8% in the June-September quarter.

Khara said the bank hopes to further reduce bad loans, and keep the rate below 1%.


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