According to Mr. Hemant Contractor Managing Director State bank of India will have to weigh the slowdown in credit growth and asset quality pressures before passing on the interest rate hikes by the Reserve Bank of India on the borrowers.
Reports said that State Bank of India has launched Vishwa Yatra Foreign Travel Card in Saudi Rial. Mr. Hemant said that the Reserve Bank of India has increased the Repo rate from 4.75percent – 8.25percent, 1% change. He also said that the RBI has lend fund to the Bank 12 times in the past 18 months. The food inflation has increased to 10.6 percent, the whole sale price index inflation 9.72 percent in September.
Reports said that economics expect further raise in the repo rate due to the growing inflation and that banks have increased the base rates 400 basis point and transmitted the hikes to its borrowers.
Due to this heavy rate hikes the banks credit growth decreased from Rs 2,28,271 crore to Rs 2,06,515 crore in the current financial year compared with the corresponding last year.
SBI one of the largest Indian banking and financial services company is aggressively occupied in Community Services Banking; it is also involved in offering Educational loan to students in order to pursue education in India or aboard. The bank also provides a variety of services including SBI Internet banking, SBI Life Insurance, SBI Personal Loan, SBI Home Loan, SBI Auto loan, loan against mortgage of property etc.