SBI eyes 12% credit growth on mining turnaround

State Bank of India (SBI), the country's biggest lender, is targeting 12 per cent growth in credit in the state this fiscal, banking on a turnaround in the mining sector which it expects to happen by the third quarter.

"We are eyeing 12 per cent credit growth in this fiscal. By the third quarter of this fiscal, we hope that credit will pick up as the mining sector is expected to recover by that time. Mining is the backbone of the state economy and there is much reliance on mining and metallurgy," said K M Trivedi, chief general manager, SBI (Odisha).

The public sector lender logged 9.1 per cent credit growth in last fiscal. The bank's exposure under different portfolios include Rs 5,775 crore in MSMEs (micro, small & medium enterprises), Rs 3,100 crore in agriculture, Rs 3,134 crore in home loans, Rs 1,227 crore in auto loans and Rs 802 crore in education loans. The bank has also financed around Rs 300 crore to SHGs (Self-Help Groups). The home loan portfolio grew by nine per cent in 2014-15.

With advances worth Rs 23,273 crore, SBI has a market share of 31.12 per cent in the state. Also, with a deposit base of Rs 58,100 crore, the bank has a market share of 31.70 per cent in deposits.

SBI has managed to cut its NPA (non-performing assets) rate in the state drastically from the level of over 14 per cent (as on March 2014) to about seven per cent now.

Under Pradhan Mantri Jan Dhan Yojana (PMJDY), the flagship scheme for financial inclusion, SBI has opened 2.03 million accounts, mobilising Rs 238.41 crore.

Commenting on the recently launched social security schemes, Trivedi said, "We have enrolled 794,000 people under Pradhan Mantri Suraksha Bima Yojana and 178,000 persons under Pradhan Mantri Jeevan Jyoti Bima Yojana. SBI has mobilised more than 2,250 accounts under Atal Pension Yojana." With the lead bank responsibility in 19 districts including 15 districts affected by Left Wing Extremism (LWE), SBI has 16.2 million deposit accounts, 956,000 loan accounts, 516,000 agriculture accounts and 369,000 individual accounts. It has provided Rs 807 crore loan under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. It has a market share of 40 per cent in CGTMSE guaranteed loans.

SBI currently has a network of 821 branches across the state, 80 per cent of which are located in rural areas. In this fiscal, the bank plans to open at least 44 new branches and put up 125 new ATMs.

The PSU bank expects that by March 2019, 80 per cent of its transactions in the state would be routed through alternative channels like ATMs, green channel banking and PoS (Point of Sale) terminal. Presently, 70 per cent of the bank's transactions are done through such channels.