Business News

SBI prepared to handle the credit growth rise and anticipates a 9% increase in loan book in FY22

Spread the love

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.

NEWS SOURCE

ALSO READ : Future Consumer suffers Rs 155 crore loss in Q4, with revenue falling by 59%

Recent Posts

As Ola’s Bhavish Aggarwal Faces Criticism, Zomato’s Deepinder Goyal Receives Praise for PR Savvy

The contrasting public images of two prominent Indian startup founders, Zomato's Deepinder Goyal and Ola's…

2 months ago

Singham Again Trailer Launch: What to Expect

The excitement is palpable as Ajay Devgn and director Rohit Shetty gear up for the…

2 months ago

Hardik Pandya Impresses with No-Look Ramp Shot and All-Round Performance in India’s First T20I Win Against Bangladesh

Hardik Pandya showcased his prowess as an allrounder in T20 cricket, contributing significantly with a…

2 months ago

New Haryanvi Song “Bahu Chaudhariya Ki” Launched by Aman Jaji and Pranjal Dahiya

HR Beat Production has unveiled its latest Haryanvi hit, "Bahu Chaudhariya Ki," featuring artists Aman…

2 months ago

Apple’s iPhone 16 Pro Max: Improved Battery Life and Camera Features, but Missing Key AI Updates

Apple's highly anticipated iPhone 16 series is set to launch on Friday, with the flagship…

2 months ago

Music Director Vipin Reshammiya, Father of Himesh Reshammiya, Passes Away at 87

Vipin Reshammiya, father of Himesh Reshammiya, has passed away at the age of 87. He…

2 months ago

This website uses cookies.