Business Standard

SBBJ cuts loan growth target to 17% for FY13

Dull corporate credit demand behind revision

Related News

With slowdown in demand, the (SBBJ) has cut the target to 16.5-17% for March 2013 from earlier 18%.

Shiva Kumar, managing director of SBBJ, associate of SBI, said "as of now it (corporate credit) is dull and still does not show positive signs about growth".  Bank had set 18% target for loan growth at beginning of year (April 2012).

Its loan book rose by about 14% to Rs 50,243 crore in 12 months ended September 2012. For the six of current financial year (upto September), its loan book expanded by just Rs 1,000 crore from Rs 49,244 crore at end of March 2012.

Bank will put emphasis on increasing the retail loans like vehicle and housing. This book is growing at 33%. Its share in total book is expected to move up to 30% by March 2013 from present 25%, Shiva Kumar said.

Its net profit rose by 51% in the second quarter ended September 2012 to Rs 169.21 crore from Rs 112.17 crore in July-September 2012. Its net interest income grew by 42.25% to Rs 679 crore.

Its net interest margins (NIMs) improved to 3.96% from 3.31% in Q2 of 2011-12.

Its stock, which is listed on Bombay Stock Exchange, is trading at 412.25 per share, up 2.51% over previous close.

It reported a 13.58% growth in deposits to Rs 64,829 crore. SBI’s associate bank shed bulk deposits and reduced there  share in total deposits to 11%, he said.

Its gross non-performing assets stood at Rs 1,681 crore (3.29%) as against Rs 1,652 crore (3.70%) at end of September 2011. They declined from Rs 1,874 crore at end of June 2012.

Its capital adequacy ratio (Basel II) was 12.44% at end of September 2012.

Read more on:   
|
|
|
|

Read More

Festive season brings cheer for banks in retail credit

The reduction in interest rates by banks in home loans has finally helped banks to garner a higher month-on-month growth this year in the festive ...

Quick Links

More news from Finance Rss icon

Retail bond issuance preferred route of fund raising for NBFCs despite costs

Muthoot Finance planning to raise Rs 400 cr by public issue of bonds to meet working capital needs

SBI defends loan to Adani, says money disbursal after scrutiny

The loan will go through proper due diligence both on credit side as well as on viability side, said the SBI chairperson

FM discusses steps to control NPAs with PSU bank chiefs

Asks them to ensure smooth credit flow to projects

Back to Top