wever, if the investments of ₹ 48,000 crore in corporate bonds and ₹ 45,000 crore in commercial paper are included, the loan book growth stood at 6.2%. This year the bank expects credit growth to be just 6.5% and is targeting 11% next year. “Our target is 11%. I think the government will be doing quite a few things to get credit growth back. I am sure they are aware of the fact that we cannot attain the kind of a GDP growth that we have estimated without credit picking up,” sa- id Bhattacharya.
“We are also seeing a large number of projects that were on the drawing board seeing growth like projects in the road, railways and transmission sectors.”
Gross bad loans stood at ₹ 1.08 lakh crore, or 7.2%, of the loan book. After provisions of ₹ 7,244 crore, net bad loans stood at ₹ 61,430 crore, or 4.2% of total loans. The share of impaired loans (restructured and gross NPA) stood at 9.6% of the loan book.
The watch list loans that the bank fears may slip into bad loan basket stood at ₹ 17,992 crore down from ₹ 34,776 crore as on March 31, 2016. The bank saw slippages – downgrade from standard loan to sub-standard category – of ₹ 10,185 crore.
“The fact of the matter is that chunky pieces are obviously out of the way. Overall stress reduction will only happen when the economy is doing much better. For the economy to do much better, we need demand to show much better pick-up,” Bhattacharya said. Non-interest income rose 58% to ₹ 6,087 crore partly driven by the stake sale of SBI Life on which the bank earned ₹ 1,755 crore in the third quarter.
Global net interest margin stood at 2.78% against 2.93% in the corresponding period last year. Due to demonetisation, the bank’s deposit market share jumped 74 basis points as it garnered ₹ 1.33 lakh crore during the note-ban exercise. Total deposits rose 22% to ₹ 20.4 lakh crore. The share of current and savings account (CASA), also known as low-cost deposits, stood at 46.5% from 42.7% a year ago.