Pratip Chaudhuri, Chairman of State Bank of India (SBI) informed that the bank may achieve a deposit growth of 14 -16 per cent and a loan growth of a maximum 16 percent in 2013-14.
In 2012-13, the largest public sector bank posted 15 per cent and 21 per cent growth in deposits and advances respectively.
He said the loan environment was rather weak and hardly any demand in the industrial sector so whatever loan demand is coming is from consumer sector, he said.
Demand for credit among companies is muted as they are increasingly depending on overseas borrowing to meet their capital needs, Chaudhuri said.
Many of the corporates who are thinking of long-term loans for their projects are increasingly preferring dollar loans as they are cheaper. Dollar loan pricing is going down every year but rupee loan pricing is not going down. Demand for rupee loan from corporate sector is weak Therefore, the bank pegs loan growth at 16 per cent, he said.
The bank aims 25-30 per cent growth in housing loans at Rs 30,000-35,000 crore in 2013-14 as it is optimistic over the growing demand from housing sector. He said about 25 per cent of bank’s total housing loans are ‘takeover loans’ which are also boosting growth in outlay for housing and the NPA (non-performing asset) level in this sector was less than one per cent.
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