| Credit demand, which has been growing at 28-30 per cent annually for more the past 12 months, is seen in all sectors "� retail, rural, industrial and infrastructure. |
| "This growth is unsustainable and has to slow down on its own. It sometimes gives me sleepless nights," Purwar said, on the sidelines of a press conference to announce the bank's alliance with CAP-CLSA. |
| High credit offtake growth brings with it challenges of non-performing assets (NPAs) and perhaps pressure on resources. While pressure on resources are a not a big issue, risk of some assets turning into bad loans is a major concern, Purwar said. |
| Credit offtake rose by 22.9 per cent in the first nine months (April "� December, 2005) of the current financial year. The total outstanding bank credit stood at Rs 13,52,482 crore, according to Reserve Bank of India (RBI) data. The deposit growth, however, failed to keep pace credit offtake. |
| In the first three quarters of the current financial year 2005-06 (April and December), banking system's credit grew by Rs 2,52,054 crore while its deposits rose by Rs 2,40,496 crore. On an incremental basis, the credit-deposit ratio (CD ratio) continues to be over 100 per cent. |
| SBI Caps, CLSA to form JV |
| SBI Capital Markets today entered into a strategic alliance with CLSA, a leading international broking and merchant banking outfit, to jointly pitch for merger and acquisitions mandates. The arrangement is for two years and the State Bank of India hopes to convert this alliance into a joint venture in due course. |
| "As and when such joint venture between SBI Caps and CLSA fructifies, we would like to have the majority stake in it," SBI Chairman A K Purwar said. |
| The alliance would offer investment banking services, jointly bid for merger and acquisitions assignments in India and facilitate overseas acquisitions buy Indian corporates and visa versa. |
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