MUMBAI, July 1:India's largest lender State Bank of India is forecasting 25 percent loan growth in the year to March 2007 as growth remains strong in Asia's third-largest economy.

The current scenario is dynamic, and we will continue to focus on retail, small and medium companies, and agriculture, Om Prakash Bhatt told a news conference after taking charge as chairman of SBI on Saturday.

The forecast is lower than the 30 percent SBI achieved in the year to March 2006 but still higher than the central bank's forecast of 20 per cent for the banking sector for the year. “It (30 per cent growth rate) is not sustainable indefinitely. This (forecast) is a good growth rate, Bhatt said.—Reuters