Business

SBI targets double-digit deposit growth:

MUMBAI: State Bank of India, the country’s largest lender, is aiming for double-digit deposit growth as loan demand a top executive said on Friday.
Challa Sreenivasulu Setty, managing director at SBItold Reuters.
Along with stepping up efforts to attract more deposits at home, banks are also looking more aggressively for deposits from abroad.
Setty said non-resident Indians’ foreign currency deposits at domestic banks “still need to be improved” even after the banks have raised interest rates.
“I think we still have to see more momentum in these FCNR lines,” he said.
In the quarter to the end of June, SBI’s deposits increased by 8.73%, a slight decrease compared to the third quarter. The bank’s advances increased by 15-16% year-on-year.
SBI has also seen its credit line utilization increase by 10 percentage points from a year ago to nearly 60%.
“We are seeing capacity utilization increase across many industries, and working capital utilization is also increasing, which suggests the momentum will continue.” he added.
SBI expanded domestic lending by 14.93% year-on-year in the previous quarter, led by strong retail lending growth. It expects that their international wealth book will continue to be around 15% of total assets.
The bank is also aiming to focus on increasing fee income from overseas operations.
“Now we want to focus on how we can increase our fee-based income, whether we can attract more participants and also be part of the club deals and be a part of the initiation and then later delivery,” Setty explained.
The bank remains on the lookout for a volatile global economic scenario and may revisit its growth strategy for international operations as the situation evolves, he said. Currently, asset quality in this portfolio remains high, with a bad debt ratio at 0.52%.
Shares of SBI are up 22% this year.

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