State Bank of India (SBI) is keen to raise its interest rate bar by hiking the same to around 50 basis points from tomorrow onwards in order to stay in line with other banks. The complete quantum details will soon be announced by the company, as mentioned by the senior SBI official dealing with the leading bank’s retail business.
The car loan portfolio of SBI registered a fine growth of 25.25% in September 2011 and stood at Rs. 22,025 crore as compared to September 2010. However in the first six months of this fiscal, the growth was quite controlled as its car loan grew by mere Rs. 1,115 crore. At the end of March 2011, SBI’s auto loan portfolio was Rs. 20,910 crore. On the other hand according to the Reserve Bank of India, the vehicle loan portfolio of banks was Rs 86,877 crore in November 2011.
SBI’s annual growth also declined from 25.57 per cent in the year-ago period to 17.9% in November 2011 for offering vehicle loans. Also the passenger vehicle sales confronted commendable increase of 16.3% from 2007 to 2011 but beginning of 2011-12 showed a bit of decline and the industry witnessed a sluggish growth in terms of sales impacted by various market conditions such as inflation, hike in interest rates, increase in petrol prices etc.
Despite of many great promotional offers, new launches, discounts and freebies, Indian auto market differed to attract customers even in festive seasons.