SBI Mortgages Top Rs 9 Lakh Cr, Credit Growth Surges

State Bank of India (SBI) has announced its mortgage loan portfolio has surged beyond Rs 9 lakh crore as of last month. This significant achievement fuels the bank's optimism for achieving an overall credit growth of 14% for the current fiscal year. The Retail, Agriculture, and MSME (RAM) segment, a cornerstone of SBI's lending, has also crossed the Rs 25 lakh crore mark.

Following economic recovery, SBI has boosted its credit growth target from 12% to 14%. The bank is witnessing strong growth in the RAM segment, with MSME lending up by approximately 17-18%, and agriculture and retail loans growing around 14%. Even unsecured personal loans are projected to see double-digit growth.

Corporate credit, which had seen slower growth, has now turned around with a 7.1% increase in the second quarter, and SBI projects lower double-digit growth for this segment. The bank believes it can fund this growth without needing additional equity capital, aiming to maintain a Capital Adequacy Ratio of 15% over the next 5-6 years.