State Bank of India Chairman Arundhati Bhattacharya said that stress was lessening for the bank and projects were expected to pick up by the last quarter of fiscal 2016, when loans would also grow, but a few sectors were of concern.
Addressing a post-results press meet here on Friday she said SBI’s fresh slippage more than halved to Rs.4,769 crore in the fourth quarter of 2014-15 over a year.
‘Gross and net NPA and PCR are lower,’ she said, adding that five out of 14 circles had made cash recoveries of Rs.100 crore each.
However, some sectors such as construction (comprising mainly EPC companies) and power (where PPAs were not in place) were areas of concern. Steel, too, was a cause of worry due to the dumping, she said.
SBI closed 2014-15 with a 20.3 per cent jump in standalone net profit at Rs.13,102 crore. Its fourth quarter net profit increased by 23.1 per cent.
SBI Group’s consolidated net profit rose 20 per cent to Rs.16,994.30 crore during the fiscal under review compared to Rs.14,173.77 crore in the previous fiscal. All the subsidiaries barring one were now doing well.
OTS windowMs. Bhattacharya said to help people facing genuine repayment problems the bank would hold a camp for extending one-time settlement schemes. “This will be open not for wilful big defaulters, but for people genuinely in trouble and the windows will be open till June 12,” she said. SBI’s total restructured accounts stood at Rs.71,229 crore in 2014-15.
The Chairman said that the bank’s strategy during the year was to consolidate its regular lines of business while exploring new opportunities. On capitalisation plans, she said approvals for raising Rs.15,000 crore were available.
The bank would hit the market in 10 months although the details were yet to be decided.
Ms. Bhattacharya said the bank had recast its organisational structure. It had sought permission to have two more Managing Directors in addition to the four posts now, she added.
