The country's largest lender, State Bank of India has aimed at reduction of bad loans (NPAs) arising from retail loans to 3% this fiscal. The current NPA level of retail loans of the bank is 3.08%, an official of the bank said.

"I want to bring down my NPAs (SBI's) in retail loans to less than 3%, to around 2.75% in this (financial) year," the official said.

"The NPA levels are down to 3.08% currently from 3.24% in March. We have also tied up with SBI Cards for the soft recovery process, which involves direct calling to customers in order to speed up the recovery process," the official added.

The recent report by rating agency Icra says that the share of home loan market for SBI is at par with HDFC Bank.

"Our incremental market share in home loans is close to 19%. Not only home loans, we want to increase our market share in auto loans to 18% from 16.75% now. We are planning to increase our sanctions to Rs 5,875 crore from Rs 4,415 crore in the last financial year," the official said.

"We may have to re-price our rates(loan rates) once the base rate is finalised," the official said.