SBI to return to profit in Q2FY19
State Bank of India, which saw its results run into red in June quarter, is likely to return to profit as early as the current quarter as it has set its house in order, according to a top official.
Speaking to the media, SBI chairman Rajnish Kumar, said on Friday, “A lot of provisioning was done in March quarter as well as in the June quarter. The intent is to take the blow upfront and then from September onwards, start returning to normal.”
SBI, which suffered a loss of ` 4,876 crore for the June quarter due to higher bad loans, saw its total provisions more than doubled to ` 19,228 crore for the first quarter of this fiscal, from ` 8,929.48 crore in Q1 of FY 18.
Mr Kumar, however, was hopeful that the country’s largest lender will be able to achieve a stable growth in advances.
“Lending ( for SBI) is mostly on consumer loans like car loans, home loans, personal loans. SME is showing a good pick up. Corporate loans ( are also improving) also because now we have put our house in order... so we are looking at some good lending opportunities and I think this year the corporate lending will be revived. We said 10 per cent growth in advances,” said Mr Kumar, who was in the city for some CSR activities where in SBI made donations to Greater Hyderabad Municipal Corporation, government hospital and also for tribal welfare.
Mr Kumar said that the bank expects resolutions in about 7- 8 power sector projects worth ` 17,000 crore in about a week’s time as it awaits for approvals.