SBI poaches big-ticket corporate loans

Dangling   the carrot of cheap loans, State Bank of India (SBI) has turned aggressive in taking over blue-chip (with credit rating of AA and AAA) corporate loans from rival banks, especially public sector lenders.

SBI, the country’s largest lender, has picked up loans worth Rs 8,000 crore including that of the Nuclear Power Corporation from Bank of India and the Gujarat Power Corporation account from Power Finance Corporation. “There is trade-off. We have not lowered the risk bar, but the price bar (read cheap loan). The focus is on corporates with high credit rating,” said a senior SBI official. SBI’s large corporate loan book grew by 40.3 per cent in 2012-13 to Rs 1,75,831 crore by the end of March.

Read more >> Click here