The State Bank of India’s (SBI) gold loan book has crossed the ₹1 lakhcrore mark for the first time, Chairman Dinesh Khara said on Friday.
The lender, which has a 24% market share in gold lending, is bullish on the segment’s growth as the asset class offers investors a safe investment option amid rising prices. inflation.
“Last week we broke through a portfolio of ₹1,000,000,000 of gold loans for the first time. In the first quarter of the current year, we have seen much better growth than what we have achieved in the past. I expect that in the current year we should be able to grow well in this particular segment,” Mr. Khara told reporters on Friday.
He said that in case of inflationary conditions, gold, as an asset class, becomes more preferred.
“Normally during such a time when gold is a preferred asset class, there is also a felt need to monetize this asset class. this asset class,” he said.
Regarding wealth management, Mr. Khara said the lender’s Assets Under Management (AUM) in the segment is currently ₹1 lakh crore.
Speaking about the bank’s retail lending portfolio, which grew 15% in fiscal 2022, Khara said retail continues to be an important driver.
“The way it (retail lending) has grown in the past, we think we should be able to take advantage of the growth potential available in the retail segment,” he said.
However, he said there are also opportunities in corporate, SME and international book.
The bank is able to meet all sorts of demands for the economy to grow, he noted.
The bank’s retail distressed loans are less than 1%, excluding MSME distressed loans.
The lender on Friday announced a slew of retail banking services, including a new variant of pre-approved loans and API banking services for businesses and aggregators.