SBI expects Q4 corporate credit growth at five to seven per cent

Kolkata: Largest commercial lender State Bank of India (SBI) is anticipating that growth in corporate credit offtake during the last quarter (Q4) of current fiscal of the bank to be in the region between five to seven per cent on year-on-year basis, an official of the bank said.

SBI deputy managing director P N Prasad said the bank is witnessing fresh enquiries on project finance in several sectors like road, city gas distribution and renewable energy.

"During Q4 of the current financial year, we are expecting the corporate credit growth to be around five to seven per cent on year-on-year basis," he told reporters on the sidelines of a CII event here.

Prasad said the bank is also witnessing fresh interests in project finance in the areas of road, city gas distribution and renewable energy.

"Corporate credit offtake generally happens more at the end of the fourth quarter. Some of the PSUs, central government and state government, disburse and consume money in the last quarter," he said.

Sectors like thermal power, NBFCs and commercial real estate sector are currently facing some stress, he said.

"We are generally seeing some kind of stress in the power sector. There are some thermal power projects which are facing some challenges in terms of their tariff and delay from payments from distribution companies. We are also seeing some stress in some of the NBFCs, and commercial real estate as well," Prasad added.