SBI to buy loan portfolios
06 Dec 2003
Venkatachalam says SBI will, however, restrict itself to securities that enjoyed the highest rating. "Buying loans is another means to increase retail business. Retail portfolio such as housing, vehicle and personal loans is growing fast across the financial sector. In the case of SBI, retail loans portfolio is set to increase by nearly Rs 12,000 crore this fiscal."
Retail
loans are increasing by about Rs 800 crore to Rs 1,000
crore per month, he says. "Half of SBI's retail portfolio
is housing loans. A major portion of the other half is
loans for automobile purchases. Here again, a tie-up with
Maruti has helped. SBI lends for over 5,000 cars of Maruti
alone, every month."