SliPPages to be ‘un­der con­trol’ in com­ing quar­ters: sbi

The Sunday Guardian - - & Comment Analysis - IANS

KOLKATA: The State Bank of In­dia is ex­pect­ing that slippages will be “un­der con­trol” in the com­ing quar­ters, an of­fi­cial said here on Saturday. “The fresh slippages have started ta­per­ing off and go­ing for­ward the slippages would be un­der con­trol,” SBI Man­ag­ing Di­rec­tor Ra­jnish Ku­mar said on the side­lines of “Bank­ing Col­lo­quium” or­gan­ised by the Con­fed­er­a­tion of In­dian In­dus­try. Ku­mar said the cost of credit in large- and mid-cor­po­rate seg­ments was high as com­pared to credit cost in the re­tail portfolio. “In the re­tail portfolio, the credit cost is not high but in cor­po­rate and mid-cor­po­rate seg­ments, the same is high as the level of non-per­form­ing as­sets (NPAs) is high (in the seg­ment) and the bank has to make pro­vi­sions for stressed as­sets,” he added. Ku­mar said that cost of lend­ing would be high with the pro­vi­sion­ing cost of 2.4 per cent which needed to be brought down. Stress­ing on the need for im­prov­ing earn­ings to make higher pro­vi­sion­ing, he said the gross NPAs went up af­ter the merger of as­so­ciate banks with the SBI. The lender is pro­ject­ing a credit growth of 6-8 per cent in the cur­rent fis­cal, he added. He said the lender took a host of mea­sures apart from the NCLT process to ad­dress the problem of NPAs.

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