SBT to switch over to fully-automated loan processing system by 2014

Kerala-based bank will kick-start the scheme from June this year

State Bank of Travancore (SBT) is planning to switch over to a fully-automated loan processing system by 2014. The Reserve Bank of India (RBI) has been emphasising that the banks should look at proper risk management, with the help of information and technology on data analysis and individual credit scoring. The Kerala-based bank said it will kick-start the pilot scheme from June this year.

On capital raising, the bank would require funds as Basel III and credit growth. "We are in talks with SBI which holds 75% in the bank, but cannot say what kind of amount they infuse," said P Nanda Kumaran, managing director of the bank.

On the automated loan processing, he said, "It would help the bank to reduce bad loans and the fully-automated loan processing system will eliminate the human interface that could make different analysis on the loan applications received.”

He added, it can help in data analysis and will also help bank give approvals in a speedy manner.

The gross NPA of the bank is at 3% and the net NPA is around 1.75%. “It is slightly adverse, we are taking all the efforts to control, with the help of reports from external credit bureaus and internal assessment system.”

On expansion programme he said, SBT has a total of 954 branches and 950 ATM's across the country and plans to add 46 more branches by March.

SBT's focus will be on retail and corporates and in the retail segment the bank has lost some momentum and it will regain it. Overall we are aiming at a 21% growth, he said.

The bank has a total business of more than Rs 1,40,000 crore as on date. SBT market share in total business in Kerala is 21% as on June 2012. SBT has made a net profit of Rs 510.46 crore during 2011-12 and Rs 317.07 crore for the half year ended September 30 2012.