SBI crosses ₹1-trillion in gold loans, says chairman Dinesh Khara
Premium- Khara said that in first quarter of FY23, SBI saw decent traction in gold loans and much better growth compared to what it witnessed in the same period in the past
MUMBAI: The country's largest lender State Bank of India (SBI) crossed the trillion rupee-mark in gold loans last week and expects the segment to see significant growth in the current fiscal, chairman Dinesh Khara said on Friday.
“In gold loans we are seeing a good traction in the current year and I would like to draw your attention to a very important point. Invariably we have seen that during inflationary conditions gold is one of the preferred asset classes and that means there is traction for gold loans too," said Khara, adding that the bank has a 24% market share in gold loans.
Khara said that in first quarter of FY23, SBI saw decent traction in gold loans and much better growth compared to what it witnessed in the same period in the past. “I expect that in the current year (FY23), we should be in a position to grow well in this segment," he said.
On retail loan growth, Khara said it continues to be an important engine for the public sector lender. “(Going by) the way it has grown in the past, we expect that we should be in a position to ride the growth potential available in the retail segment," he said.
However, it does not mean that other opportunities are not available in terms of the asset growth, he said, adding that there is demand from the corporates, small businesses and also in the international book.
Meanwhile, the bank on Friday announced a clutch of services including a new type of pre-approved loans, and application programming interface (API) banking for corporates and aggregators.
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