SBI raises credit growth target for fiscal year 23 to 14-16% on business loans

Bombay : The State Bank of India (SBI) has revised its outlook for credit growth to 14-16% for the current financial year, driven by a strong recovery in the investment cycle and companies replacing overseas credit with rupee loans, President Dinesh Khara said on Saturday. The bank had previously forecast credit growth for FY23 of 11-12%.

SBI has a pipeline of business loans worth 3.5 trillion under sanction, Khara said. Ability utilization is also showing signs of improvement. The country’s largest lender sees demand from the infrastructure, renewable energy, oil companies and trading and service sectors.

“It was a busy neighborhood. That’s why we’ve had strong credit growth. However, I still expect, on the current trend, credit growth of 14-16% in the current fiscal year,” he said after the July-September earnings announcement. the bank.

During the second quarter, the overall loan portfolio increased by 21% year-on-year. Most of the growth came from large business and personal loans. The international business saw strong growth in the quarter with loan growth of 18% year-over-year (year-over-year) in dollars.

SBI is the barometer of credit growth in the banking system which is currently 16% YoY. Other major banks such as HDFC Bank, ICICI bank and Axis bank also recorded strong year-over-year growth in Q2FY23 and expect to maintain this level of growth.

Credit growth builds on strong Q2 numbers for SBI. At the end of September, SBI reported a 74% year-on-year increase in net profit to 13,260 crore thanks to strong growth in non-interest income and higher net interest margins. Net interest income grew steadily by 13% year-over-year, supported by healthy loan growth and margin improvement to 3.32% in Q2 from 3.02% in Q1.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less