The asset high-quality circumstance at State Bank of India (SBI) remains healthier and the quicker-than-anticipated financial recovery may well limit the effect to lenders’ balance sheets, the bank’s Chairman Dinesh Kumar Khara stated on Thursday.
He, on the other hand, did not share facts on the COVID-connected loan restructuring for SBI citing the silent period ahead of the outcomes.
It can be noted that in the bi-annual Financial Stability Report (FSR) released final month, the RBI had anticipated banks’ non-performing assets to deteriorate additional since of the pandemic and asked them to be cautious.
“I would also mention that the asset quality book of the bank remains healthy,” Khara told reporters on the sidelines of an occasion right here.
The macroeconomic circumstance is not the identical as it was in April, and with the ease in restrictions post lockdown, we have noticed a recovery approach which led to development in distinctive pockets, he stated.
He acknowledged that the macro-economy had noticed troubles at a point of time and the money flows for the corporates had also been impacted.
Better remedy for COVID-19 patients and the arrival of vaccines have also enhanced self-confidence which is pushing financial recovery, he stated.
Hinting that the money flows for the corporates have enhanced since of interventions like the ones the government has taken, Khara answered a certain query on asset high-quality saying, “These are the positives which we have seen. This gives the confidence that perhaps situation may not turn out to be as bad.”
Khara, who took charge as the chairman of SBI in October 2020, stated it is critical for the lenders to retain in touch with their borrowers at this important time to aid and counsel them as and when essential.
To a query of restructuring witnessed by the bank, he stated the bank is analysing the money flows of organizations who have applied for the relief and will be taking a contact based on the identical, but declined to specify the quantum of relief sought.
The SBI chairman, who was speaking following the listing ceremony for a USD 600 million bond situation on the India INX, stated the coupon price of 1.80 per cent at which the bonds have been issued is the lowest because 2008 and a huge self-confidence booster not just for the bank but also for the Indian economy.
“We have demonstrated the strength of the Indian economy,” he stated.
He declined to comment on his spending budget expectations, saying the identical have been conveyed through meetings to the government.