In an exclusive interview to CNBC-TV18, Dinesh Kumar Khara, Chairman of State Bank of India (SBI) said the lender is seeing uniform loan growth across retail segments. SBI's loan growth — a measure of demand for financial institutions — surged to the highest level in at least three years in the April-June period, a level its management is confident of achieving for the full year.

SBI shares have rewarded investors with a return of eight percent in the past one month, a period in which the Nifty50 benchmark has risen almost two percent.

"We have very clear visibility of the demand, which is there, and hopefully going forward, as the busy season kicks in, and of course, already the festival season has kicked, I am quite confident that we will continue to have decent retail growth," said Khara, confident that the bank will clock loan growth of at least 15 percent for the year ending March 2023.

Optimistic remarks from the chief of the country's largest bank by assets comes at a time when central banks have made aggressive hikes in COVID-era interest rates, but are faced with the Herculean task of taming red-hot inflation without hurting economic growth.

India is heading into a festive season which typically leads to higher consumer demand, which aids the profitability for lenders as people borrow more.

"I can say with some bit of a certainty the way things are that we should be in the vision to record at least 15 percent growth," he said.

"When it comes to the kind of loan growth, which you are seeing, and more so in the retail sector, to my mind, it is quite sustainable... We are seeing it uniformly across mortgages, unsecured personal loans, pension loans and auto loans," he said.

"We are seeing good (lending) traction in the renewable energy and electric vehicle spaces also. Apart from this, road, airport and port continue to be the focus for infrastructure... Even in the NBFC space, there is good growth."

He said SBI's net interest margin for the year ending March 2023 will come in at around 3.15-3.2 percent. Net interest margin is a key measure of profitability for financial institutions, determining the amount of money made on interest earned from borrowers after taking into account interest payments to depositors.

He also shed light on the lender's book in project loans, which stands at Rs 1.5-1.7 lakh crore. About 70-75 percent of these proposals are from the private sector, something the lender is hoping to continue going forward, according to Khara.

SBI will soon be raising money through Tier II bonds, on top of the Rs 6,800 crore raised through AT1 bonds — or perpetual bonds — at "possibly the best price", said Khara.

Last month, SBI reported a 6.7 percent sequential decline in net profit for the quarter ended June 2022 despite a 12.9 percent jump in net interest income — or the difference between interest earned and interest paid.

Khara had said the three-month period was largely dominated by concerns about inflation and forex rates.

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