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SBI plans higher exposure in infrastructure

Rajalakshmi Menon

MUMBAI, July 3

STATE Bank of India is looking to increase its exposure in infrastructure sectors such as power, telecom and roads by 5-10 per cent for the year 2000-2001, according to a senior bank official.

Though the bank has sanctioned Rs. 15,000 crores to power projects during the past year-and-a-half, disbursements amounted to Rs. 6,969 crores only. These included loans to new power projects and the local State Electricity Boards totalling Rs. 3,500 cro res, the bank said.

In corporate credit, the total advances amounted to Rs. 50,000 crores-Rs. 60,000 crores in the core areas of textiles, steel and engineering during 1999-2000. The bank, however, is not in favour of increasing its advances to these sectors and plans to co ntain itself at levels of 10 per cent in steel and 11 per cent each in textiles and engineering, said officials.

The bank is aiming for a growth of 18-19 per cent in total credit during 2000-2001. The gross advances had increased to Rs. 98,102 crores for the year ended March 31, 2000, from Rs. 82,359 crores as on March 31, 1999.

State Bank of India (SBI)'s domestic advances portfolio increased by 20 per cent for the year ended March 31, 2000.

The bank is planning to focus on the personal loan segment with a thrust on housing loans this year. During 1999-2000, it had introduced several new schemes for this loan segment. Last year, the bank had set a target of Rs. 2,000 crores in this segment, which it intends to double this year.

In the housing loan segment, the bank's total advances amounted to Rs. 1,000 crores. This year, SBI is planning to increase the disbursements in housing loans to Rs. 2,000 crores.