Let us understand the big picture from you. The credit growth that SBI reported for the quarter gone by was in double digits – 17-17.5%. Looking at the state of the economy, inflation and global turbulence, are you getting a sense that things could slow down for FY24?
The year which we are closing today, witnessed phenomenal growth in terms of the credit and also it has been a very broad-based growth. It is not confined to only a few sectors. But the way the trends are looking, it is actually quite positive. The trends which are there are in terms of outstanding proposals which are still being processed, as also the sanctions which you have given and which have yet to be disbursed.So, all said and done, I would say that as far as credit is concerned, there is a very clear visibility of the growth in the coming year too. If we look at the broader macro, the demand seems to be something which is quite encouraging and it is both in terms of retail as well as in terms of corporate.
Can I safely say that in terms of credit growth, you expect the growth momentum of 15 to 17% to continue?
Yes, I would say that around 14-16% is something which I have been maintaining. We should be in a position to clock growth somewhere around 14-15%.
Yes, I would say that around 14-16% is something which I have been maintaining. We should be in a position to clock growth somewhere around 14-15%.
Do you see the gap between the deposit growth and the credit growth narrowing down because that in a sense has been a concern for the banking industry per se?
What we have seen is that the deposits are growing in the range of about 10% or so but at the same time credit has witnessed a growth of about 15-16% last year. So I think it will, as I was indicating that we are expecting credit growth of about 14-15% in the coming year and likewise we expect that even deposit growth should marginally improve. Having said that, I would also like to mention that our credit deposit ratio even as of now, if we look at our domestic book only it would be somewhere around 66-67%. It actually gives us enough elbow room to build our book without compromising on cost of resources
What we have seen is that the deposits are growing in the range of about 10% or so but at the same time credit has witnessed a growth of about 15-16% last year. So I think it will, as I was indicating that we are expecting credit growth of about 14-15% in the coming year and likewise we expect that even deposit growth should marginally improve. Having said that, I would also like to mention that our credit deposit ratio even as of now, if we look at our domestic book only it would be somewhere around 66-67%. It actually gives us enough elbow room to build our book without compromising on cost of resources
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