State Bank of India (SBI) will focus more on gold-backed loans for personal use as well as agricultural use, after lending over one trillion rupees to that sector by June 2022.
The country’s largest lender on Friday celebrated its official launch with the announcement of premium services for customers, including Lots of Money and a new version of YONO personal loan, as well as WhatsApp Banking. It also opened 31 Central Processing Centers (CPCs) for semi-urban and urban centers for services like educational loans.
SBI Chairman Dinesh Khara said that gold is considered a popular investment option in times of inflation. If this is made the preferred asset class, there will be demand for gold based loans.
The bank experienced much higher performance (for gold loans) as compared to the corresponding period last year. He declined to give details on specific targets ahead of preliminary first-quarter results, citing regulatory limitations.
SBI offers gold-backed credit in two categories which are personal loan and agriculture segment.
The bank’s cold loans for agriculture portfolio increased to Rs 73,000 crore in FY12 from Rs 66.878 crore during FY121. The bank had over 2.4 million Krishi Gold loans amounting to Rs 37,500 crore in the last quarter of FY22, which was approved by YONO Agriculture, as per the bank’s annual report for FY22.
In the personal segment, the gold loan book grew by 9.89 per cent to Rs 23.063 crore at the end of March 2022.
Khara said retail lending remains “an important engine for us”. “The growth rate over the years has been quite impressive. We anticipate that we will benefit from the growth potential. We will continue to look at the possibilities whether it is corporate or SMEs.”
SBI will launch premium banking services on a trial basis in Hyderabad along with SBI Mumbai Metropolitan Circle. After an evaluation, it will be extended to the entire country. “The goal is to create early-stage wealth banking service clients (emerging wealthy clients),” Khara said. The assets under management asset banking exceed one trillion.
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