The State Bank of India (SBI) on Thursday said the estimate given for stressed assets in the current financial year factors in the challenges faced by mortgage lender Dewan Housing Finance Corporation Ltd. (DHFL).
DHFL, which is facing a cash crunch, has delayed interest payment to its non-convertible debenture (NCD) investors and now has to pay in a week’s time to avoid default.
“Challenges faced by accounts like DHFL have already been factored in when we had given our estimate for the stress that the bank would have to deal with in FY19-20 and included in our estimates for slippage and loan loss provisioning for the current financial year,” SBI said in a statement.
The public sector lender said its overall NBFC portfolio quality continued to be good.
“SBI has been very closely monitoring its exposures in the NBFC sector for the past 10 months and taking action as deemed appropriate. The overall quality of the NBFC asset portfolio in our books continues to be good,” it said.
