The country's largest lender public-sector lender State Bank of India (SBI) on Wednesday said it expects to hit a loan growth of 14 percent this fiscal driven largely by the retail sector.
The growth is driven largely by retail which is doing very well for the last couple of years and the loan demand from government enterprises is also growing strongly, said Rajnish Kumar, chairman, SBI.
“We are seeing huge demand from those entities, they are large ticket loans,” Kumar said.
The retail segment, comprising of personal, small and medium enterprises (SME) and agriculture, constituted 57.5 percent of SBI's domestic loan book at over Rs 17.46 lakh crore during 2017-18.
On nonbanking financial companies (NBFC), Kumar said, “I do not foresee a big problem and NBFCs have been able to rollover most of the loans. There is a news item that now they have started lending again. So the situation that was prevailing about 2-3 months back has now improved considerably.”