SBI expects 20% credit growth in current fiscal

We are refinancing for good corporate accounts as our rates are cheaper compared to others, says SBI Chairman Pratip Chaudhuri

State Bank of India (SBI) today said it expects to clock 20% growth in credit and 16% expansion in deposits in the current financial year.

"New corporate demand (for credit) is low but retail demand is very strong. Credit growth would be 20% and deposit growth 16% (in FY14). We are refinancing for good corporate accounts as our rates are cheaper compared to others," SBI Chairman Pratip Chaudhuri said.

He was speaking to reporters on the sidelines of an award function organised by by Institute for Development & Research in Banking Technology (IDRBT) here.

On net interest margin, a key profit indicator for lenders, Chaudhuri said "NIM is comfortable up to March and we think we will be doing well. Outlook (for NIM) that we have given at 3.6%."

The liquidity position in the financial system is good, the head of India's largest lender said.