State Bank of India, the country’s largest lender, is cautiously bullish about its prospects, expecting its loan book to increase 9% in FY22 and stepping up efforts to recover stressed assets. Despite the second wave of Covid-19, the Indian economy is primed for a rebound in FY22 because to its resiliency.
“I am cautiously optimistic that the performance trajectory of FY21 will continue in FY22 as well,” Chairman Dinesh Khara stated this in his speech to shareholders at the virtual annual general meeting. In FY21, the bank’s loan book increased by 4.8%.
According to Khara, FY22 began with an unexpected second wave of Covid-19 infections. Although the confinement approach this time avoided a total lockdown and instead managed the situation through micro-containment zones, the economic impact will be felt.
According to him, the bank is well positioned (in terms of capital adequacy) to handle credit expansion.
In answer to questions, the chairman stated that capital adequacy is now around 13.74 percent, which is quite comfortable. Last Monday, the board of directors approved raising up to Rs 14,000 crore in capital through tier I bonds, which would assist to replace ageing notes while also supporting company development.
In terms of stress asset management, Khara stated that with the implementation of pre-package insolvency for resolution, the resumption of courts, and the formation of the National Asset Reconstruction Company, efforts would be intensified in the current fiscal year to maintain the momentum in recovering stressed assets.
The pandemic’s breakout and subsequent lockdown in FY21 changed the dynamics of stressed asset recovery, including disruptions in routine processes at the National Company Law Tribunal. Despite this, the bank managed to reduce gross non-performing assets (NPAs) by Rs 22,703 crore by March 2021.
ALSO READ : Future Consumer suffers Rs 155 crore loss in Q4, with revenue falling by 59%
Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.
HR Beat Production has unveiled its latest Haryanvi hit, "Bahu Chaudhariya Ki," featuring artists Aman…
Apple's highly anticipated iPhone 16 series is set to launch on Friday, with the flagship…
Vipin Reshammiya, father of Himesh Reshammiya, has passed away at the age of 87. He…
On its eighth day at the box office, "Stree 2" has maintained its impressive momentum,…
On the fourth day since its release, the movie "Crack" managed to accumulate a mere…
Rakul Preet Singh Shines in Pink, Golden, and Saffron Lehenga; Jackky Bhagnani Dons Pink and…
This website uses cookies.