Rs 5-trn corporate loans in pipeline: SBI
Sees no challenges, while its Retail Agriculture and MSME (RAM) lending growing at 16%
image for illustrative purpose
Defying High Rates
- No stress on housing, vehicle loans
- Despite high interest rate, RAM lending rose to Rs21 lakh cr in FY24
- Gross NPA in whole retail portfolio is 0.7%
New Delhi: State Bank of India (SBI) Chairman Dinesh Kumar Khara has said there is a growing demand for credit from the corporate sector and loans worth Rs5 lakh crore are in the pipeline. Unlike the past few years, when the corporates had sufficient cash surplus on their balance sheet, they have started looking for credit to fund working capital requirements and capacity expansion, he told in an interview.
“Now, we have come to a stage where they (corporates) have started approaching banks for augmenting their capacity or for working capital purposes. Of course, this I can say with confidence because when we look at our unavailed term loan percentage, it has come down from 25 per cent to 18 per cent and when we see the working capital utilisation, even that has improved,” he said.
So, all these are confirming that private sector opportunities are going to be there and SBI will be in a position to create value for the sector, he said. At the same time, he said, “when we look at our pipeline for the new proposals that is also quite healthy, somewhere around Rs5 trillion or so”. Retail Agriculture and MSME (RAM) lending is growing at 16 per cent, said Khara.
