SBI auto loans see impressive growth, innovative loan schemes and initiatives put them at the forefront of India’s burgeoning auto market.
NEW DELHI (India CSR): As India’s automobile market surges, driven by increased income levels and a host of buying options, the State Bank of India (SBI) emerges as a frontrunner in new car loans. The bank has posted impressive YoY growth and launched cutting-edge initiatives and services, securing a substantial slice of this booming sector.
SBI notched a 23.2% YoY increase in auto loans, totalling Rs. 18,375 Crore in FY2023 and capturing a 19.4% market share.
The high-value car loan segment (loan amount >= Rs. 25 Lakh) registered an extraordinary YoY growth of 160%. Celebrations were in order as SBI crossed the Rs 5 Trillion mark in its Personal Banking Business Unit (PBBU) Advances.
Impressively, proactive monitoring, rigorous follow-up and superior underwriting culminated in a reduction of NPA to 0.43%, down from 0.69% the previous year, positioning SBI at the industry vanguard.
Key to SBI’s success are innovative initiatives, such as increased manpower for loan distribution, partnerships with major car OEMs for swift in-principle sanction, and a range of pre-approved offerings.
‘SBI-Easy Ride’, a fully digital product, enables seamless two-wheeler financing. Furthermore, SBI’s ‘Green Car Loan’ scheme promotes eco-friendly transportation, offering concessionary rates and longer repayment periods for electric vehicle purchases.
Key Points & Data:
| Year | Auto Loan Portfolio (Rs in Crore) | YoY Growth | NPA | Market Share |
|---|---|---|---|---|
| FY2019 | 97,523 | – | – | – |
| FY2020 | 71,884 | – | – | – |
| FY2021 | 72,662 | – | – | – |
| FY2022 | 76,322 | – | 0.69% | – |
| FY2023 | 79,148 | 23.2% | 0.43% | 19.4% |
Other Initiatives:
- Partnerships with major car OEMs
- ‘Green Car Loan’ scheme for electric cars
- Launch of ‘SBI-Easy Ride’ for digital two-wheeler financing
- Target of adding 5.86 Lakh new customers over the year
With these milestones and initiatives, SBI is driving forward India’s automobile sector, matching the country’s accelerating growth with equally fast-paced innovation.
