State Bank of India (SBI) last week reported a steady profit for the December quarter. Rajnish Kumar, chairman of SBI, spoke to CNBC-TV18 about the lender's financial performance.
In terms of slippages, Kumar said, in FY19 guidance was that fresh slippages will not exceed 2 percent and till Q3, our slippages are Rs 32,000 crore, which includes the increase in the outstanding in respect of non-performing assets (NPAs) accounts and our loan book now is currently at Rs 21.5 crore. By March end, it will be Rs 23 lakh crore. So this guidance which I had given that our NPA would not exceed Rs 40,000 crore fresh slippages, we are very much within that range. It can be lower, it can be Rs 40,000 crore but not likely to be substantially higher than that."
Talking about the bank's exposure to DHFL, Kumar said, "We have Rs 11,000 crore exposure and in last three years when we merged the bank, our bank and associate banks taken together was Rs 8,000 crore, so there has not been much increase and the exposure is secured, it is serviceable, the cash flows are positive."Source: CNBC-TV18