SBI's loans grow by 18-20% so far in FY14

Credit growth led by retail loan demand, no moderation in project financing

State Bank of India (SBI), the country's largest lender, has seen 18-20% rise in its advances so far in the current financial year. While the bank's credit growth has been primarily driven by retail loan demand, the state-run lender has also not witnessed moderation in project financing.

 

"Our project finance disbursement is more than last year. Others may have stopped lending during this period of gloom, but we never stopped. Hence, we are seeing growth. Our sanctions have increased year-on-year," PK Malhotra, deputy managing director of SBI, told reporters on the sidelines of a banking seminar organised by the Confederation of Indian Industry (CII).

 

The bank has seen 10-12% rise in project financing so far this year. "Not only existing projects, we are also getting applications (requesting funding) for new projects," Malhotra said.

 

His comments come at a time when most bankers claim that loan requests for new projects have dried up and credit growth is driven only by retail loan demand and requirement for working capital finance.

 

Malhotra said project financing accounts for less than 10% of SBI's total loan book.

 

SBI's chairman Pratip Chaudhuri had earlier said the bank will aim for 20-25% growth in advances in the current financial year.