SBI aims at optimising assets growth - taking into account Risk adjusted Return and Capital Conservation.
Lending to large and mid-sized corporates has been impacted by the overall slowdown in corporate capex. However, to negate the impact of the same we decided to further step-up our thrust on retail loans. The move is aimed at optimising Capital with Risk adjusted Return.
On the corporate side, a tepid borrowing appetite from highlyleveraged corporates coupled with low demand has resulted in tepid loan growth, even after a substantial fall in lending rates over the past year. Furthermore, at SBI, new loans focus has been for highly-rated corporates with strong credentials. SBI is cognisant of these challenges faced by corporates and expects a turnaround in the asset quality to be gradual. In the meantime, our focus remains on strengthening our performance while maintaining the quality of our assets. The retail segment has continued to drive the credit growth of the Bank in FY2017. Home loans constitute over 58% of the retail loans. Our home loan portfolio has increased by 17%, to a significant market share of 25.88%. The auto loan business demonstrated a similar trend, and registered a growth of 21%. Here also, we enjoy a market share of 27.16%. Our success in the retail segment has been a result of our wide distribution reach; our use of digital technology to enhance customer experience; and stringent underwriting standards.
To be an enduring value creator, we need quality growth and focus on customers who help in driving better returns while balancing our role as the country’s premier public sector Bank. We have been evolving our retail channels and product strategies to become even more consumer friendly. We aim to ensure a consistent and seamless customer experience across all channels, as our digital technology platform has enabled us to enhance our overall service quality. Today, our retail business remains the linchpin behind our strategy for strengthening our performance while maintaining the quality of our assets.
