SBI Adopts Cautious Approach to NBFC Lending While Targeting Growth in Renewable and Real Estate Sectors
State Bank of India (SBI) adopts a cautious approach to NBFC lending, prioritizing renewables and real estate as growth sectors in corporate loans. Managing Director Ashwini Kumar Tewari highlights SBI’s selective lending strategy, reflecting regulatory concerns and a commitment to supporting high-potential industries.
SBI Adopts Cautious Approach to NBFC Lending While Targeting Growth in Renewable and Real Estate Sectors
State Bank of India (SBI) is adopting a cautious and selective approach to lending to non-banking financial companies (NBFCs), reflecting the concerns highlighted by regulatory authorities. Ashwini Kumar Tewari, Managing Director in charge of Corporate Banking and advances, stated that while demand for credit from NBFCs persists, SBI is closely monitoring these engagements.
SBI, India’s largest lender, is focusing on growth opportunities in renewable energy and real estate to drive its corporate loan portfolio. As corporate credit demand rises, Tewari noted that renewable projects and real estate developments are expected to play pivotal roles in shaping the bank’s lending strategy. With a balanced approach to lending, SBI aims to safeguard its asset quality while supporting sustainable and high-potential sectors.
This cautious stance towards NBFCs comes amid broader trends in India’s financial sector, where rising interest rates and regulatory scrutiny have led banks to be more vigilant in their lending practices. SBI’s strategy reflects its commitment to supporting India’s economic growth while ensuring financial stability.
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