Gold loans have been seeing good traction during the current year, said SBI chairman Dinesh Khara. “Invariably, we have seen that during inflationary conditions, gold is one of the preferred asset classes and that means there is traction for gold loans too,” he said. In the first quarter of FY23, the bank has seen decent traction in the segment and much better growth compared to what it saw during the corresponding period in the past. “I expect that in the current year, we should be in a position to grow well in this segment,” Khara added.
At the end of March 2022, the value of SBI’s outstanding gold loans to individuals stood at Rs 23,063 crore. The Rs 1-trillion portfolio therefore likely includes agri- loans backed by gold. The value of total outstanding gold loans to individuals in the banking sector as on May 20, 2022, stood at Rs 73,752 crore.The retail segment continues to be an important engine for SBI, Khara said. “Having said that, it nowhere means that other opportunities are not available in terms of the growth of the asset side.
There are opportunities which are available in the corporate and SME (small and medium enterprises) sides and also in the international book also,” he said. SBI’s retail loan book grew over 15% year on year to `10.02 trillion as on March 31, 2022. Loans to individuals accounted for 41.6% of the bank’s total loan book.