[sbinews] SBI presages doubling of priority loans book (Business Standard)

  • From: "Rajendra S. Pai" <rs.pai@xxxxxxxxx>
  • To: <sbinews@xxxxxxxxxxxxx>
  • Date: Wed, 10 Mar 2004 08:50:48 +0530

SBI presages doubling of priority loans book
(Business Standard)

Our Banking Bureau in Mumbai
Published : March 10, 2004

State Bank of India expects to end the financial year 2003-04 with a 100 per
cent jump in disbursements to the priority sector.

As against Rs 2,000 crore disbursed in fiscal 2002-03, the bank is likely to
end the current fiscal with disbursals of Rs 4,000 crore to the priority

In the April 2003 through January 2004 period, SBI has made advances
aggregating Rs 1,900 crore to the priority sector (Rs 1,300 to agriculture
and Rs 120 crore by way of tractor financing).

In FY 2003-04, disbursements for the tractor segment is pegged at Rs 500
crore while that for the agriculture sector at Rs 3,500 crore. Priority
sector advances account for close to 40 per cent of the net bank credit.

"A good monsoon coupled with robust agriculture production are the main
reasons for increased credit offtake. Typically, disbursements in the third
quarter are high," said ES Balasubramanian, deputy general manager, SBI.

According to C Sundarashyam, chief general manager, SBI, the bank's exposure
to the tractor segment will be ramped up to Rs 1,500 crore in the coming
financial year.

"SBI is well positioned for lending to the agriculture sector due to its
large network of branches. We have 1000 agriculture development banking
branches and 6,000 rural and semi-urban branches," he said at a press
conference in Mumbai to announce SBI's tie up with Same Deutz-Fahr India for
providing tractor finance.

Sundarashyam pointed out that SBI had tractor financing tie-ups with
Mahindra & Mahindra, Tafe, Escorts and Punjab Tractors.

The bank is also in talks with six other tractor manufacturers, including
HMT, New Holland, Eicher, etc. The 10 tractors manufacturers account for
almost 90 per cent of the market.

As per the memorandum of understanding between SBI and Same Deutz-Fahr, the
bank will provide 90 per cent loan at 10.25 per cent (for loans above Rs 2
lakh) and at 9.75 per cent (for loans up to Rs 2 lakh) interest, making it
the lowest interest rate in tractor finance in India.

Commenting on the delinquency rate in lending for tractors, Sundarashyam
said that the level of NPA in priority sector lending is as high as 19 per

Same Deutz-Fahr India, which is seeking to get a foothold in the highly
competitive tractor market, is trying to lure the Indian farmer by giving
him a discount up to Rs 5,000 per tractor and free accessories worth Rs
3,000 to 5,000 depending on the range of the tractor. The company will also
give a warranty of three years to a farmer under the 'SBI- Same Tractor
Finance' deal.

Email From ""Rajendra S. Pai" <rs.pai@xxxxxxxxx>" was security checked by 3.90  
version of CxProtect(tm)
On: mail_store at: 08:58:21, 10-Mar-2004 Wednesday
Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator/s 
can post messages to the list. 

This mailing list is maintained and moderated by Sri. R.S.Pai, currently 
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] SBI presages doubling of priority loans book (Business Standard)