Dinesh Kumar Khara, Chairman Of SBI, Share His Opinion On The Bank's

 

There are a couple of things which actually gives us the confidence of having an asset quality which will be maintained.

 

One of course is our underwriting standard.

Second we have strengthened the collection machinery significantly and third the most important one

we recognize the stress much in advance and we provide for it immediately, so whatever stress we observe

it may not be a regulatory requirement to provide for such assets but we do it right away.

 



So that is something which gives me a confidence that perhaps we will not see any challenge as far as the stress in the book is concerned

and it is it is uniform across the same corporate and retail so that is something which really it makes me happy but of course,

we have to keep on working on these lines okay so let me try and get some numbers from you then you know your

slippages and restructuring so far in this year's almost above 42000 crores.

 

If he is not wrong what will the full year look like any number you can share or the credit costs guidance for the full fiscal year.

 

I think credit cost guidance, i will be maintaining prior guidance of keeping it less than one by all means so 100 basis point so that will be my guidance even going forward and also let me also tell you that i would like to under promise and over deliver so that is the other very cardinal principle which i follow, so that's where it stands and so i think.

 

When it comes to other numbers of course the kind of slippages which you have seen this quarter the early trends for the coming quarter also are more in sync with the similar kind of slippages and we don't expect any challenge on this but you'll close the full year with what you're at about 42000 with restructuring plus slippages you'll close to your width he would not hazard a guess as of now let us see what happens but as he is mentioned he is very strongly believe in under promise and over delivery.


corporate book is concerned he would like to mention that we had a under utilization of the working capital limit and corporate site to the extent of almost about 52 percent so it has come down to under utilization has come down to 43 so which means that the utilization of the working capital facilities have improved to the extent over nine percent and similarly when it comes to time loans there was univalent of term loans.

 

Which was as high as about 22 percent in the in the month of  December 20 it has come down to about 21 so marginal improvement there but overall in terms of absolute number this total number aggregates to about 4 lakhs crore so that is where it stands apart from that the kind of announcements which have been made in the budget relating to infrastructure.

It is will give confident that it will actually encourage a lot of loan growth. We can we continue to support infrastructure sector creation and apart from that the other core sector will also witness a decent growth we saw last year itself that when it comes to iron and steel the capacity utilization has had almost 800 and similarly when it comes to aluminum also it was almost 100 so we expect capacity addition in these sectors.

 

Which will also give us an opportunity to support the credit growth of the bank so overall he would like to say that the early trends which we have seen in the month of January of this of this current quarter it august well because last quarter we have seen the overall credit growth as high as about 1.33 trillion we expect that we should improve this credit growth in this quarter.

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