Term Loans Grow To Rs 66,580 Cr

During 1991-96, banks have tried to consolidate their presence in the realm of providing term loans. In this period, total term loans grew from Rs 46,938 crore to Rs 66,580 crore. Of this the share of the public sector banks (PSBs) was Rs 52,521 crore.

Total assets grew from Rs 31,508 crore in 1991-92 to Rs 50,969 crore by 1995-96. Of this, the share of PSBs stood at Rs 44,664 crore in 1995-96, with State Bank of India's (SBI) share being Rs 16,020 crore.

Demand loans accounted for 73.6 per cent of advances in 1995-96 against 70 per cent in 1991-92. The loans witnessed an increase of 66 per cent at Rs 1,85,909 crore in 1995-96 over 1991-92 ( Rs 1,11,736 crore ). SBI and it's associate banks continue to be the leaders accounting for 32.3 per cent at Rs 60,092 crore in 1995-96 .

 

The other PSBs have registered an increase of 56 per cent in their demand loans at Rs 94,926 crore in 1995-96 as against Rs 60,794 crore in 1991-92. The private sector banks have seen it go up by 246 per cent to Rs 17,045 crore in the same period. The amount of term loans given by banks has risen by 42 per cent from Rs 46,903 crore in 1992-92 to Rs 66,580 crore in 1995-96. Though quantum wise, the term loans given out by SBI & its associates have increased, their share has come down from 31.4 per cent in 1992-92 to 27 per cent in 1995-96.

The other PSBs witnessed an increase of 21.7 per cent at Rs 34,448 crore in 1995-96 against Rs 28,832 crore in 1991-92 . The private sector banks have seen a 246 per cent growth in term loans extended. They have been aided largely by the newly set up private banks, which lent Rs 747 crore in 1995-96.

The quantum of advances secured by tangible assets and bank\government guarantees was Rs 2,32,293 crore and unsecured loans were placed at Rs 20,198 crore in 1995-96.