SBI Raises 2023 Credit Growth Target to 14-16% in Corporate Lending

Mumbai The State Bank of India (SBI) has revised its outlook for credit growth to 14-16 per cent this financial year on a strong recovery in the capital spending cycle and businesses replacing offshore credit with rupee loans, Dinesh Khara said. the chairman said on Saturday. The bank had previously forecast credit growth of 11-12% for FY2023.

SBI has a valuable corporate lending pipeline. ¥$3.5 trillion is under sanctions, Mr Khara said. The capacity utilization rate is also showing signs of improvement. The country’s largest lenders see demand from infrastructure, renewable power, oil and marketing companies, and the services sector.

“This quarter was a busy quarter, which is why our credit has grown so much.

Second quarter loan balances increased 21% year over year. Most of the growth is due to large corporate and personal loans. Our international business delivered strong growth in the fourth quarter, with loan growth of 18% year-over-year in dollar terms.

SBI is a pioneer in credit growth in the banking system, which is currently 16%. Other large banks such as HDFC Bank, ICICI bank and Axis bank also reported strong year-on-year growth in the second quarter of 2023 and expect to maintain this level of growth.

Credit growth was underpinned by SBI’s strong Q2 numbers. At the end of September, SBI reported a 74% year-on-year increase in net profit. ¥SEK 13,260 was driven by a strong increase in non-interest income and an increase in net interest margin. Net interest income grew steadily at 13% year-over-year, supported by healthy loan growth and margin improvement from 3.02% in the first quarter to 3.32% in the second quarter.

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