The country’s largest lender State Bank of India (SBI) on Friday said its gold loan portfolio has crossed Rs 1 lakh crore mark for the first time, chairman Dinesh Khara said on Friday.
The lender, which has a 24 percent market share in gold loans, is bullish on growth in the segment as the asset class provides investors a safe investment option amid rising inflation.
”Last week, we crossed Rs 1 lakh crore portfolio in gold loans for the first time. In the first quarter of the current year, we have seen much better growth as compared to what we have achieved in the past. I expect that in the current year we should be in a position to grow well in this particular segment,” Khara told reporters on Friday.
He said in the case of inflationary conditions, gold, as an asset class, becomes more favorable.
”Normally, during such a period when gold is a preferred asset class, there is also a felt need for monetizing this asset class. That’s why we feel there is much opportunity for this asset class,” he said.
On wealth management, Khara said the lender’s Asset Under Management (AUM) in the segment is currently at Rs 1 lakh crore.
Talking about the bank’s retail loan portfolio, which witnessed a growth of 15 percent in fiscal 2022, Khara said retail continues to be an important engine.
”The way it (retail loans) has grown in the past, we expect that we should be in a position to ride on the growth potential which is available in the retail segment,” he said.
However, he said there are opportunities available in the corporate, SME, and the international book as well.
The bank is in a position to cater to all kinds of growth requirements of the economy, he noted.
The bank’s retail stressed loans are less than one percent, excluding MSME stressed loans.
The lender on Friday announced a host of retail banking services including a new variant of pre-approved loans and API banking for corporates and aggregators.