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State Bank says it can control fresh slippages

Rajnish Kumar

Rajnish Kumar  

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Concern is 3% net NPA now, says MD

The country’s largest lender State Bank of India (SBI), which is reeling under huge stressed assets like other banks, is hopeful that going forward it would be able to control fresh slippages

“Going forward, fresh slippages will be under control. Specifically from September onwards, things will become better,” MD (national banking group) of SBI Rajnish Kumar said.

Mr. Kumar said that gross NPA was 9.93% of its total lending, which was roughly ₹1.90 lakh crore. “We are rather concerned with the net NPA which is at 3% now,” he told reporters on the sidelines of a CII meet here.

The ideal net NPA level should be 1.5%, he said. The bank was also aiming at higher provisioning, which would be aided by increased earnings, he said adding that the present provision coverage ratio was 60%.

Mr. Kumar said that reduction in NPA levels as a percentage of total lending would only happen when the credit base increases.

During the current financial year, the bank’s credit growth is pegged at 6 to 7%, he said.

Green bonds

SBI would also raise money from green bonds to fund clean projects, Mr. Kumar said.

Regarding resolution of stressed assets, he said that there was need to improve the infrastructure in the first place.

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Printable version | Jan 24, 2020 11:36:38 PM | https://www.thehindu.com/business/state-bank-says-it-can-control-fresh-slippages/article19700233.ece

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