SBI MD has said that the bank is losing ability to pass on rate hikes to borrowers

By | September 20, 2011

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.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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