SBI Chairman Highlights Rs 5 Lakh Crore Corporate Credit Demand Surge

State Bank of India Chairman Dinesh Kumar Khara states there's a rising demand for corporate credit with Rs 5 lakh crore worth of loans in the pipeline. Unlike previous years, corporates are now seeking loans to fund working capital and capacity expansion. SBI's retail, agriculture, and MSME lending is expected to grow by 16% this year despite high interest rates.

State Bank of India Chairman Dinesh Kumar Khara has announced a significant surge in corporate credit demand, noting loans worth Rs 5 lakh crore are currently in the pipeline.

Khara pointed out that, unlike recent years where corporates had ample cash reserves, they are now actively seeking loans to fund working capital needs and capacity expansion. He stated this trend is evident as SBI's unavailed term loan percentage has dropped from 25% to 18%, and there's been an uptick in working capital utilization.

Khara is confident that these changes signal substantial private sector opportunities, with SBI well-positioned to create value. He revealed that new proposals in the pipeline also look promising, totaling around Rs 5 trillion. On the fronts of Retail, Agriculture, and MSME (RAM) lending, Khara anticipates a 16% growth this year, despite high interest rates, underscoring the robustness of SBI's risk assessment and underwriting processes.

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