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| SBI expects marginal growth in credit offtake for June quarter |
| BS Reporter / Kolkata Jul 14, 2009, 00:45 IST |
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 State Bank of India (SBI), the country’s largest lender, expects a marginal growth in credit offtake in the April -June quarter, over the corresponding previous quarter.
“On a year-on-year basis, the credit growth has been good. However, over the last quarter, the credit growth has been very marginal at Rs 4,000-5,000 crore,” SBI Chairman O P Bhatt said on the sidelines of a Ficci banking conclave in Kolkata on Monday.
To bolster credit demand, SBI had recently introduced concessional home and auto loan schemes. Under the auto loan scheme, SBI is offering 8 per cent fixed rate in the first year and 10 per cent for the next two years.
In the home loan segment, SBI is offering loans up to Rs 30 lakh at fixed rate of 8 per cent for the first year and 9 per cent for the next two years.
“We introduced special schemes on auto and home loans, but still there is not much demand for credit. Till June, the credit offtake has been marginally higher over the last quarter,” said Bhatt.
The bank’s net interest margin (NIM) had declined to from 3.16 per cent in December 2008 to 2.32 per cent. “We would like to maintain of 2.50-3.00 per cent by the end of this financial year,” Bhatt said.
On the merger of State Bank of India with State Bank of Indore, Bhatt said the merger would happen in two-three months after the requisite approvals. “Only State Bank of Indore is on the anvil at present,” he added.
SBI has got first-stage approval from the Insurance Regulatory and Development Authority (IRDA) for its general insurance venture. SBI has tied up with Insurance Australia Group for its general insurance foray.
Bhatt said the non life insurance venture would start functioning next year. SBI would start custodial services business this calender year, he added.
SBI had inked a joint venture agreement with French financial services firm Societe Generale Securities Services (SGSS) for custody and other related services in India.
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