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SBI Raises Target For Purchase Of Loan Portfolio

9 October, 2018 11:53 AM
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SBI Raises Target For Purchase Of Loan Portfolio

Top lender State Bank of India said on Tuesday it is stepping up its target to buy "good quality" asset portfolios from non-banking financial companies (NBFC).

NBFC sector has been in the spotlight after IL&FS, a major infrastructure financing and construction company, defaulted on a string of debt obligations in recent weeks triggering wider concerns about risks in the country's financial sector.

SBI said it believes that there is a "good opportunity" to expand its loan portfolio at "attractive rates".

The lender said it now sees scope to buy additional portfolio assets of 200 billion to 300 billion rupees ($2.69 billion to $4.04 billion) this year. The bank had initially planned for growth of 150 billion rupees through portfolio purchases.

"This is going to be really beneficial for the NBFCs as they will get liquidity they require, while SBI will get assets with high yields," said an analyst with a domestic brokerage who did not wish to be named.


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