SBI expects 23 per cent growth in credit: Bhatt

The country's largest lender State Bank of India (SBI) said it is expecting a credit growth of about 23 per cent during 2009-10.
In 2009-10 the bank recorded a credit growth of only 18 per cent.

SBI chairman O P Bhatt also said the bank is expecting lesser non-performing asset for the fiscal year owing to recovery in the farm sector.

''Rate of formation of NPA is coming down and if the recovery of agriculture sector is good, it would come down further,'' Bhatt said in Coimbatore today.

He was speaking to reporters after inaugurating the bank's first captive windfarm project in Coimbatore, as part of the bank's strategy to reduce its carbon footprint and sensitize its customers to the need for adopting energy-efficient processes (See: Suzlon turbines to drive SBI's captive wind farm at Coimbatore).

The electricity generated from the wind turbines will power various SBI facilities and operations across Gujarat, Maharashtra and Tamil Nadu, where it has installed 10 Suzlon S-82 1.5 MW wind turbine generators that would yield 15 MW power.

If the agriculture and retail sectors perform well (on normal monsoon), it will push up credit growth to 22-23 per cent from the second quarter, Bhatt said, adding he expects infrastructure and capital expenditure sectors to pick up steam.