Double-digit rise in top banks’ loans

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Key Points

While SBIs advances rose 16% y-o-y to Rs 32.69 trillion as of March-end, HDFC Banks grew 17% to Rs 16 trillion..

Large banks, including State Bank of India (SBI), HDFC Bank, ICICI Bank, Bank of Baroda, and Punjab National Bank (PNB), have posted 13-19% year-on-year (y-o-y) rise in their advances during Q4FY23, boosting their net interest income (NII) and bottom-line growth, data compiled by FE showed...

During FY24, SBI is aiming for an on-year loan growth between 12-14%, Khara said, adding that the growth in advances will be backed by retail loans, small and medium enterprises (SME), and the expectation of more traction in the large corporate segment, and renewable energy and allied sectors..

So all said and done, about Rs 10.5 trillion worth of proposals are either in the pipeline or they have already been sanctioned, Khara said.. Sanjay Agarwal, senior director at CareEdge Ratings, shared similar views, saying higher credit growth in FY23 was partially due to pent-up demand after the pandemic..

We have seen very clearly that there is a definite reduction in SMA-1 (special mention account-1) and SMA-2 book over a period of time as compared to March 2022 where it was Rs 3,544 crore it peaked somewhere around Rs 8,000 crore in September 2022, but again it has come down to Rs 3,200-odd crore, Khara said.. SMA accounts reflect potential bad loans on banks books; SMA-1 accounts reflect loans that are overdue between 31 and 60 days, while the SMA-2 book indicates those overdue for 61-90 days..

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