SBI says priority sector loans grew 19% this year

State Bank of India (SBI), said it's priority sector advances grew by a healthy 18.88 per cent or Rs 24,892-crore during the year as at end-December 2008. The bank has thus surpassed the 40 per cent stipulated lending to the priority sector. The lender, which disbursed Rs 1,32,300-crore under priority sector till March 2008, said its small and medium enterprises loans grew by Rs 11,482-crore till end-December. "Although there was a substantial increase in adjusted net bank credit over March 2008, a matching growth in priority sector advances has been registered to ensure the required share in overall lending," SBI said. Priority sector advances primarily comprise of agriculture, small-scale industries, small business finances, educational and housing loans upto certain specified limits, the bank said in a press release issued here. The outstanding under SME advances as on March 2008 was Rs 74,039-crore. The share of SME advances covered under priority sector advances stood at Rs 52,628-crore comprising over 61 per cent of aggregate SME loans. According to Reserve Bank guidelines, nearly 40 per cent of the total adjusted net bank credit should be in priority sector.