SBI Forecasts Double-Digit Corporate Credit Growth

With the rising economic activity, SBI sees a revival in corporate credit demand, expecting double-digit growth in the coming quarters. The bank is confident of maintaining its capital adequacy without additional equity, despite upcoming RBI decisions on rate cuts. SBI recently executed the largest QIP in Indian markets.

In a clear sign of economic revival, State Bank of India (SBI) anticipates a surge in corporate credit demand, projecting double-digit growth for the latter part of the financial year. The bank's Chairman C S Setty outlined these expectations as a result of increased economic activities.

SBI has a robust pipeline with Rs 7 lakh crore in loan sanctions, comprising unutilised working capital limits and term loans, which are currently in disbursement. This growth follows a 7.1% rise in corporate credit in the second quarter.

The bank aims to maintain a capital adequacy ratio of 15% over the next 5-6 years without needing additional equity capital. Recent macroeconomic indicators and discussions about potential rate cuts by the Reserve Bank further stimulate these expectations of growth.

(With inputs from agencies.)