Page 5 - Banking Finance March 2021

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SBI's home loan portfolio According to TransUnion Cibil's report, further provide much needed financial
credit to small businesses grew twice support to the sector," said Rajesh
crosses Rs. 5-trillion mark as fast as advances to large borrowers. Kumar, MD & CEO, TransUnion Cibil.

The State Bank of India REHBU unit of "The on-balance sheet commercial
the bank has grown five times in the lending exposure in India stood at Rs. 4 banks shortlisted for
last 10 years with an asset under 71.3 lakh crore in September 2020 with privatisation
management (AUM) of Rs. 89,000 year-on-year growth of 2.1%. MSME
crore in 2011 to Rs. 5 trillion in 2021. segment's credit exposure is Rs. 19 The government has shortlisted four mid-
sized state-run banks for privatisation,
"This extraordinary feat is a testament lakh crore, showing year on year under a new push to sell state assets and
to customers' continuous trust in the growth of 5.7% and this credit growth shore up government revenues, three
bank. We feel that combining is observed across all the sub-segments government sources said.
technology with personalised service is of MSME lending," the report said.
Privatisation of the banking sector,
the key in the current scenario," the The highest year-on-year growth of 9%
bank's chairman Dinesh Khara said. was seen in the category of small which is dominated by state-run
The bank is also working on various businesses with a loan exposure of behemoths with hundreds of
thousands of employees, is politically
digital initiatives to improve the between Rs.10 lakh to Rs. 50 lakh. This risky because it could put jobs at risk
efficiencies in home loan delivery, was followed by the Rs. 50 lakh to Rs.1 but Prime Minister Narendra Modi's
including a unique integrated platform crore segment which saw a growth of administration aims to make a start
Retail Loan Management System 8%.
with second-tier banks.
(RLMS) which will provide an end-to- According to TransUnion Cibil, the
end digital solution, he added. stimulus package announced by the The four banks on the shortlist are
The bank is looking at achieving a government through ECLGS has helped Bank of Maharashtra, Bank of India,
Indian Overseas Bank and the Central
home loan AUM of Rs.7 trillion by FY credit demand and supply bounce back Bank of India, according to sources.
2024. to pre-COVID levels. It added that
commercial credit enquiries in January Two of those banks will be selected for
2021 have settled at pre-COVID levels. sale in the 2021-2022 financial year
MSME credit increases on which begins in April, the officials said.
"The resurgence in MSME credit
govt guarantee growth, which is back at pre-pandemic The shortlist has not previously been
There has been a revival in bank credit levels, is a very promising indicator of reported.
to small businesses driven by public economic recovery in our markets. … The government is considering mid-
sector banks on the back of the Budget announcement by the FM have sized to small banks for its first round
government's Emergency Credit Line doubled the contribution to the MSME of privatisation to test the waters. In
Guarantee Scheme (ECLGS). sector over last year, which shall the coming years it could also look at

BANKING FINANCE | MARCH | 2021 | 5