SBI expects 16% loan growth for FY 2013-14
By Neelima Shankar
May 10, 2013
Print    Email    RSS   

India's largest lender, State Bank of India is projecting a lower loan growth rate of 16 per cent for the current financial year as the demand for advances from the industrial sector is weak.

"...we would like to believe that the loan growth should not be above 16 per cent and deposits growth between 14 and 16 per cent (in 2013-14)," SBI Chairman, Mr. Pratip Chaudhuri said when asked about his projections for the bank in the current financial year.

"...we feel the loan environment is rather weak and hardly any demand in the industrial sector so whatever loan demand is coming is from consumer sector," he added.

He also attributed the expectation of lower growth in advances to the increasing demand from corporate sector opting for dollar loans.

"Dollar loans are becoming cheap. Many corporates who are thinking of long-term loans for their projects increasingly prefer dollar loans. Dollar loan pricing is going down every year but rupee loan pricing is not going down. Demand for rupee loan from corporate sector is weak. Therefore, we are pegging (loan growth) at 16 per cent," Mr. Chaudhuri said.

Last financial year, SBI posted 21 per cent and 15 per cent growth in advances and deposits, respectively.

Mr. Chaudhuri said that SBI will be announcing its financial results on May 22.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs #3
Recurring deposit facility by IDBI Bank
Carnival of Indian Personal Finance Blogs #2
Fetch higher interest rate on your savings...
Know all about non-bank fixed deposits

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive