The Economic Times - - Markets: Beating Volatility -

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.

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