State Bank of India eyes 20 per cent loan growth in the mid-corporate segment this fiscal, Mr R. Venkatachalam, Deputy Managing Director and Group Executive-Mid Corporate, has said. This is much more than the 8 per cent growth recorded last fiscal.
SBI, which is the country’s largest commercial bank, classifies companies with turnover over Rs 50 crore and less than Rs 1,000 crore as mid-corporate segment.
"Last year was a difficult year and our growth was only 8 per cent. Normally, we grow at 20 per cent levels. That is why we are now aiming at 20 per cent this fiscal,” Mr Venkatachalam said.
In the mid-corporate segment, SBI’s loan book as at end March 2012 was Rs 1.72 lakh crore. A 20 per cent growth on that would mean additional advances of Rs 34,400 crore this fiscal.
"We should have an ambitious target always. Because even in a slowdown there would be some sector that is wanting funds for growth. Requirements of our society are high and all the banks together have not been fully able to satisfy the needs. There are sectors that will be growing and we will be focusing on them."
Last year (2011-12), SBI’s mid-corporate segment advances grew by Rs 9,000 crore, said Mr Venkatachalam, who was here on Saturday for a corporate social responsibility initiative of the bank.
Mr Venkatachalam sees demand revival in cement and steel, which he said augurs well for the infrastructure sector and the economy.