These are the segments where most of the defaults are coming from, so we will be very vigilant while lending. The weakness in asset quality is clearly linked to the macroeconomic scenario and , the official said.
The bank is expected to display slower growth in the large and mid-corporate segment for the January-March quarter, as the bank focuses its lending growth in the retail loan book. As on December 31, SBIs total advances stood at Rs 11,83,723 crore, up 17.3% from a year ago.
The retail loan portfolio was up 15.5% from a year ago at Rs 2,30,827 crore, while the mid corporate book was up 25.5% and stood at Rs 2,19,295 crore.
In both large corporate and mid-corporate group we had a flat growth quarter-on-quarter so we are not looking at any aggressive growth in these areas. However, retail has grown about Rs 6,700 crore sequentially, so we will continue to grow there as long as the portfolio shows good return and not too much of stress, Arundhati Bhattacharya, chairman, had told reporters while announcing SBIs December quarter results.
Non-food credit grew to Rs 57,414,226 crore in the fortnight ended February 7, up 15.04% from a year from the same period last year. Bankers attributed the growth in credit coming in mainly from lending to the agriculture sector due to the good harvest season. For FY14, RBI has projected a credit growth of 15% and deposit growth of 14%.
SBI reported slippages worth R33,569 crore during the first nine months this year, compared to R31,993 crore in the 12 months of FY13. Upgradation and cash recoveries stood at Rs 9,481 crore for the April-December period this year, while the bank wrote off Rs 7,478 crore worth of loans.