SBI's Mortgage Momentum Spurs 14% Credit Growth Forecast

State Bank of India's Chairman C S Setty announced that the bank's mortgage portfolio exceeded Rs 9 lakh crore, driving an anticipated 14% credit growth for the fiscal year. The RAM segment, comprising retail, agriculture, and MSMEs, plays a significant role in this expansion, alongside positive economic measures.

State Bank of India's Chairman, C S Setty, has reported a significant milestone as the bank's mortgage loan portfolio exceeded Rs 9 lakh crore last month. This growth aligns with the bank's revised credit growth projection of 14% for the current fiscal year, an increase from the previous 12% target.

The Retail, Agriculture, and MSME (RAM) segment forms a crucial 67% of the total loan portfolio, recently surpassing Rs 25 lakh crore. Improved economic conditions, and strong performances in the MSME, agriculture, and retail sectors, are key drivers behind this momentum.

Setty expressed the bank's confidence in achieving its 3% net interest margin despite a recent 0.25% repo rate cut by the Reserve Bank of India. Furthermore, corporate credit has resumed growth. The bank plans to sustain its capital adequacy and funding capabilities without the need for additional equity capital.

(With inputs from agencies.)