SBI CHIEF SEES NPA PROVISIONS FALLING AFTER TWO QUARTERS

MUSA DUA, INDONESIA : State Bank of India (SBI), the country’s largest lender, sees its provision for bad loans remaining high for at least the next two quarters, after which it will start softening as it steps up efforts to improve asset quality, its chairman said on Friday. The state-run lender is also seeing a slowdown in “accretion” of new bad loans, Rajnish Kumar told Reuters on the sidelines of the International Monetary Fund (IMF) meeting at the Indonesian resort island of Bali. India’s banks have been plagued by a surge in non-performing loans which hit a record $150 billion at the end of March. Twenty-one lenders led by SBI, in which the Indian government owns a majority stake, accounted for 86% of the pile. “Whatever is the provision coverage...that will still remain elevated for at least two quarters and after that it should start tapering off, the requirement to do more coverage,” Kumar said. “Overall, NPAS (non-performing loans) are under control.”

Gold up ₹140 on festive buying, firm global cues

NEW DELHI: Gold maintained its upward trend for the third straight day on Friday, rising ₹140 to trade at ₹32,120 per 10 grams on increased buying by jewellers to meet festive demand amid positive global cues.

Silver prices also went up by ₹500 to ₹39,500 per kg on fresh buying by industrial units and coin makers. Marketmen said, sentiment was upbeat largely backed by increased buying by local jewellers, driven by ongoing festive season and a firming trend overseas amid fresh weakness in the US dollar. Globally, gold traded higher at ₹1,224.60 an ounce and silver at ₹14.66 an ounce in New York Thursday. In the national capital, gold of 99.9% and 99.5% purity rose further by ₹140 each to ₹32,120 and ₹31,970 per 10 grams, respectively.

MTNL can raise authorized share capital to ₹10,000 cr

NEW DELHI: State-run telecom firm MTNL on Friday said its shareholders have approved proposals to raise authorized share capital by over 12 times to ₹10,000 crore and borrowing limit by around 38% to ₹25,000 crore. “To increase the authorized share capital of the company from ₹800 crore to ₹10,000 crore, a total of 99.9421% shareholders voted in favour of the resolution...the following resolution was passed as a special resolution,” MTNL said in a regulatory filing. The resolution to raise the borrowing powers of the board from ₹18,000 crore to ₹25,000 crore was passed as a special resolution. “A total of 99.9203% shareholders voted in favour of the resolution,” it said. The decisions were taken at the company’s AGM on Thursday. COMPILED FROM AGENCIES