SBI

Credit Growth
EVENT NAME
VENUE
DAT E

What is Credit
Credit(fromLatincredere translation. "to believe")

is thetrustwhich allows one party to

providemoneyorresourcesto another party where
that second party does notreimburse the first party
immediately (thereby generating adebt), but instead
arranges either to repay or return those resources (or
other materials of equal value) at a later date

SBI Credit Products (1/2)

Major Lending Products of SBIs product portfolio are:
Corporate Lending

Long Term lending (Project Loans, Corporate loans, NCD)

Short Term Lending (Working Capital Loans (FB & NFB)

Retail Lending
Home Loan
Vehicle Loan
Personal Loan
Education Loan
Credit Card

SBI Credit Products (2/2)

Other Products

Agricultural loans (Equipment financing, Tractor financing)

Micro Credit

Measures to increase Credit growth (1/3)

Lower Interest rates spur Credit growth - Passing on benefit

of Rate cut by RBI to its customers (loan instrument holders)

Aggressive targeting of Infrastructure finance GoI plans
on strong capital expenditure to create Infrastructure to
create demand and revive economy. SBI should target
taking lead positions in such Projects.
Track Leading Macro-Economic Indicatiors Leading
Macro-Economic Indicators like Commercial Vehicle Sale,
Plane Load factors, Freight Indexes etc be tracked for sign of
economic recovery and resultant capacity addition based
credit growth

Measures to increase Credit growth (2/3)

Banking the unbanked SBI to target certain sectors

which are currently not adequately covered, like

E Commerce players & their logistics partners : Cash flow/

receivables based financing
Education loans for Primary /Secondary education : Education
loans are currently prevalent for higher studies (Graduation, Post
graduation only)
Small business/ traders/ retail shop keepers : The Non corporate
segment comprising partnerships, proprietorships and the selfemployed setaccounts for around 40% of national income but are
grossly under-covered by Banks for credit facilities.
Targeting this segment with customised working capital/ over
draft products.

Measures to increase Credit growth (3/3)

Easing procedure and paper work involved, with an

increased on-line/ app based approach to further

increase ease of access.
Innovative Products for retail section so as to target
the increasing Middle class group of the Indian
economy.

Way Forward
Rural Credit

Structured lending products with credit enhancement

mechanism from specialized institutions like first loss facility
etc

E-Commerce

Funding working capital needs of prime sellers of major ecommerce players

Digital Banking

Channeling banking products through mobile app-based

technologies - Payment mechanism, instant loans etc

Thank You