SBI beats its competitors in few sectors.

LOW- PRICED loan schemes introduced over nine months back have propelled State Bank of India ( SBI) onto the top of the growth charts in several credit segments, piping the erstwhile leaders to the post. These sectors include home, auto, small and medium enterprises ( SMEs), infrastructure and education segments. In some of the project finance areas, the bank has become a global leader.

" Especially in home loans it is important, because HDFC and ICICI Bank were the leaders earlier. Now, SBI is number one. In auto loans it used to be HDFC Bank, in infrastructure finance, there are specialised institutions like IDFC, IIFCL, in SME space there is SIDBI, but everywhere we are number one now," said Om Prakash Bhatt, chairman of SBI, in an interview to M AIL T ODAY recently.

In the auto loan segment, SBI had gained 44 per cent to Rs 11,594 crore during the 12 months ending September 2009. During the last nine months, SBI entered into tieups with several car manufacturers and their dealers for providing auto finance.

Till recently, HDFC Bank was the leader in disbursing loans in this segment.

HDFC Bank did not respond to an e- mail sent early on Monday. However, Pralay Mondal, retail head of HDFC Bank said auto loan sanctions have seen a revival in October 2009. The bank clocked Rs 1,600 crore of auto loan sanctions during the month, including that of two- wheelers.

In the home loan segment, SBI has seen an annual growth of 23 per cent to Rs 62,338 crore. However, HDFC still has a lead over SBI in the total portfolio of home loans.

" As on September 30, 2009, the loan book stood at Rs 89,519 crore against Rs 81,192 crore in the previous year, an increase of 10 per cent. The corporation sold loans amounting to Rs 6,100 crore during the preceding 12 months. Together with the loans sold, the growth in the loan book would have been higher at 18 per cent," HDFC said in its latest quarterly results.

ICICI Bank did not respond to an e- mail seeking segment- wise break- up of growth in loans over the last 12 months.

However, its overall loan portfolio has shrunk over 13 per cent in the 12 months ended September 2009, against a 16 per cent growth in the loan book of SBI. After launching the SBI Happy Home scheme in February 2009 with loans at eight per cent for the first year, the monthly average number of home loans sanctioned rose to 22,000 in September from 14,400 in February, the bank said.

Later, SBI has extended this eight per cent loan scheme to the auto, SME and agriculture warehousing sectors.

SBI's agriculture loan sanctions grew by 21 per cent, with particular thrust on warehousing taking the portfolio to Rs 58,987 crore by September 2009.

In education loans, which are being promoted by the Centre over the last few years, SBI stood first with 42 per cent growth in 12 months at Rs 8,008 crore. The shot in the arm has come from May, 2009, when it brought down the rates, initially beginning at eight per cent.

Credit disbursal of SBI to SMEs was also up by 21 per cent to Rs 95,907 crore. This is one of the priority areas for the Centre, for they provide the largest employment per unit of investment.

SBI's SME portfolio is bigger than that of SIDBI, which is a nodal agency for SME funding.

SIBDI's loan book was at Rs 30,073 crore by September 2009.

Growth in corporate loans was at 14 per cent, with total portfolio crossing Rs 1.85 lakh crore by September 2009. Dealogic, a global data provider, had rated SBI as the global leader in five project finance areas for January- September 2009.

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