SBI raises target for buying retail loans to Rs. 450 bn

State Bank of India has tripled its target to buy good quality retail asset portfolio from finance companies to Rs 450 billion from earlier target of Rs 150 billion.

While it provides liquidity to finance companies facing resource crunch, the SBI gets an opportunity to expand loan book at higher pace.

Chairman Rajnish Kumar said the bank has stepped up target for purchase of good quality portfolio of assets from NBFCs. There is a good opportunity to expand its loan portfolio at attractive rates. This will also provide much needed funding support to the finance companies facing liquidity problems.

“We are looking for opportunities both in priority and non-priority sectors. Bank had initially planned for a growth of Rs 150 billion through portfolio purchase during the current year, which is being enhanced,” the SBI said in a statement.

According to the bank’s internal assessment, there may be an opportunity to buy additional portfolio in the range of Rs 200 billion to Rs 300 billion.