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SBI targets 40 pc rise in personal advances

Rajalakshmi Menon

MUMBAI, Oct. 27

STATE Bank of India (SBI) is targeting a 40 per cent growth in `personal advances' in the retail segment by the end of this fiscal. The bank is looking to increase its personal banking advances to Rs 14,000 crore by March 31, 2001, from Rs 10,000 crore i n the previous year.

For the first six months of the current fiscal, the bank had registered an increase of Rs 1,200 crore, a 12.5 per cent growth in six months over the corresponding period in the previous year, according to SBI officials.

As on March 31, 2000, personal advances constitute 10.5 per cent of the total advances. In the next three years, this is expected to go up to 15 per cent of the bank's total credit portfolio.

Officials said that housing and car loans contributed to nearly 60 per cent of the overall personal banking advances. The bank had recently overhauled its loan schemes and given a major thrust to housing and car loan advances.

The new schemes introduced such as the Fixed Rate Loan, Mortgage Back Loan and in deposits category, the Savings Plus scheme have all done ``exceedingly well.''

``Fresh disbursements in housing have increased to Rs 1,400 crore for the first six months, a growth of Rs 700 crore over the previous year,'' said a senior official.

Disbursements in car finance have also grown by Rs 300 crore to Rs 500 crore in the first six months of the year.

During the period, the total individual deposit base has crossed Rs 1,00,000 crore, as compared to less than Rs 80,000 crore in the previous year. The retail depositor base of the bank has shown a growth of Rs 8,000 crore with the domestic depositor base touching Rs 77,000 crore and the NRI deposit base growing to around Rs 23,000 crore.