State Bank of India, the country's largest lender, expects to maintain its current pace of credit growth while aiming to keep its net non-performing asset ratio below 1%, its top executive said on Wednesday.
After announcing its June-September quarter results earlier this month, the bank said it expects credit growth of 14% -- 16% for the current financial year, as it steps up efforts to attract deposits.
As of Nov. 4 Indian banks recorded credit growth of around 17%, while deposit growth was 8.25%, according to the latest central bank data.
As long as the risk is understood and priced well, there is no challenge in sustaining loan growth SBI Chairman Dinesh Kumar Khara told reporters.
The growth comes at a time when corporates are deleveraged. We have the confidence that the path we are treading is sustainable. The SBI has a term loan pipeline of 2.5 trillion rupees $30.6 billion and expects demand from all sectors, Khara said.
The lender's net non-performing asset NPA ratio fell to 0.8% in the June-September quarter.
Khara said the bank hoped to reduce bad loans and keep the ratio below 1% going forward.