According to a recent press release, Mr. Pratip Chaudhuri, SBI’s new chairman said that the bank will try to enlarge its market share without having any negative effects on the bank’s margins and profitability. He said that the bank has decided to reconsider its business areas where it has faced problems with the non-performing assets. The bank has also planned to increase its retail loan book.
Mr. Chaudhuri said that the bank has aimed to record a higher growth as the growth in loan and deposits have gone down in the year2010-11.He mentioned that the bank has decided to concentrate on term loans, for both corporate and retail. He also said that that the bank would try to focus more on long term credits rather than short term credits.
He added saying that the bank has decided to talk to the Reserve Bank of India regarding teaser loan (home loan) and that they were not interested in violating their regulations. He said that the bank can offer a provision of 0.4 % only and the two per cent instruction for provisioning is difficult.
He also said that the bank has grown out of lots of competition and is ready to open the banking sector to new players.