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SBI may bring down credit growth to 18 per cent

25 Oct 2010 Evaluate

Stung by slow credit offtake in the first half,State Bank of India (SBI) may revise its loan growth and bring it down to 18 per cent for this fiscal. According to the bank it would be 18 per cent from 20 per cent for the current fiscal. On an annual basis, the credit growth of SBI has been 19 per cent in 2010-11. As per the RBI data, the total outstanding credit of the banking system has gone up just 5.6 per cent to Rs 34, 22,291 crore since the beginning of this financial year.

The bank would soon finalize shareholding agreement with the joint venture partner post which the business would become operational. SBI is planning to place about 1.50 lakh point of sale (POS) terminals for debit and credit card payments across the country. It plans to deploy six lakh POS terminals in the first five years of its operations.

RBI has already approved the setting up of a wholly owned subsidiary for conducting merchant acquiring business by SBI in the name of SBI Payment Services. SBI has already selected US-based Elavon Incorporation and Visa International as its joint venture partners for merchant acquiring business.crackcrack

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