the competition to take on good borrowers. The bank acquired customers such as Hindalco, Nuclear Power Corporation (NPCIL) and Gujarat Urja Vikas Nigam by offering them interest rates which were at least 50 basis points lower than what they were paying. In the case of Hindalco, the company was able to negotiate money from SBI at 10.2%, 300 basis points lower than it had been borrowing at. SBI chairman Arundhati Bhattacharya had confirmed the bank had refinanced about R8,000 crore in the April-June 2013 period. SBIís base rate is 10% while most other public sector banks have pegged their base rates at a slightly higher level of10.25%; the bank has a relatively big base of cheaper current and savings accounts (CASA) Ė 44% of its total deposits Ė which helps lower its cost of funds.
Reserve Bank of India (RBI) data shows credit to large industries, stood at R9,71,900 crore at the end of January, 2014, up 13% y-o-y; the growth in the comparable period of 2012-13, was a more robust 18.2%. At Axis Bank, corproate loans shrank as a share of total advances from 53% at the end of December 2012 to 46% at the end of December, 2013; the corporate loan book grew 2.25% y-o-y. IOBís large corporate portfolio grew 10.33% y-o-y to R1, 52, 492 crore at the end of December, 2013. Non-food credit grew at 15% y-o-y to R58,37,218 crore in the fortnight to March 7, 2014; this is in line with the RBIís projection of 15% for FY14.
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