SBI personal banking loan book crosses ~5 trn

State Bank of India’s portfolio of personal loans crossed the ~5-trillion mark at the end of November 30 this year, said the country’s largest lender on Monday.

The bank gave loans worth ~1 trillion in 12 months in the portfolio that includes pension, auto, education, and gold. The portfolio does include housing loans. SBI Chairman Dinesh Khara said in a statement tactical measures and digital initiatives over the past few years enabled it to cross the ~5-trillion mark. The bank has always strived to set benchmarks for the industry, he said. SBI completed giving out loans worth ~1 trillion in January 2015, followed by ~2 trillion in January 2018. It touched ~3 trillion in August 2020, when Covid-19 was at its peak, and the ~4-trillion mark in November 2021. The bank said it focused on the salaried class and those with sound financial profile for expanding the personal banking loan portfolio as it keeps delinquencies low.

Senior SBI executive said the past 12 months had been a comeback period after the two phases of Covid pandemic. Along with home loans, the consumer credit has shown strong offtake.

Now, the capital expenditure cycle has gathered pace due to government expenditure and investment by the private sector. This provides a basis for robust demand for credit in the medium term. The next 1 trillion of non-home retail loans will come in the coming 12 months, he added.

The bank’s home loan portfolio achieved the ~5-trillion mark in January 2021. It expects the portfolio to touch ~7 trillion by financial year 2023-24 (FY24) and ~10 trillion in FY27. The growth is buoyed by an increased desire among youth to own homes early in life, rising incomes, and government policies like the cuts in stamp duty and subsidy.