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Last Updated : Oct 07, 2020 09:01 PM IST | Source: Moneycontrol.com

Seeing limited enquiries for corporate restructuring so far, says newly appointed SBI Chairman Khara

With respect to the capital requirement, Khara said the bank’s current capital adequacy position is comfortable.

Dinesh Kumar Khara, the newly appointed Chairman of State Bank of India (SBI), on Wednesday said the bank has so far not seen many corporates reaching out for availing the one-time loan restructuring facility. The numbers, overall, has been manageable, Khara said.

“We are closely observing the interest about restructuring. Whatever numbers we see till now is manageable,” Khara said at a press conference.

“When it comes to corporate restructuring we have not seen many corporates reaching out,” Khara said.

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The RBI announced a one-time loan recast to assist the stressed companies that are hit by the Covid-19. The RBI appointed an expert panel under K V Kamath to suggest the financial parameters to implement the scheme. The committee has identified 26 sectors which can qualify for the restructuring scheme.

Under the loan recast, companies can get relaxed repayment terms including an extension of loan moratorium for up to two years.

With respect to the capital requirement, Khara said the bank’s current capital adequacy position is comfortable.

Further, talking on SBI’s market share, Khara said SBI has been gaining market share for the last one-year. “In an economy like ours, we have a decent market share,”Khara said. Protecting the quality of loan book will be key, Khara said.

To a question on interest-on-interest on moratorium loans, Khara refused to comment saying the matter is currently in the Supreme Court.

Khara said the bank will continue regular annual hiring “We are not letting down our guard. There is a clear focus on building up the skill,” Khara said.

He added that the bank has made provisions for all corporate accounts to address the legacy problems and corporate PCR (provision coverage ratio) is about 85 percent.

Khara, who was serving as one of the Managing Directors of the bank, took charge as the new chairman on 7 October, succeeding Rajnish Kumar.

Khara is a seasoned banker who joined SBI as a probationary officer in 1984. Within SBI circles, Khara is known as a general banking specialist. He also had a foreign stint during his three-decade-long career in SBI at the bank’s Chicago office and was associated with the overseas acquisition of Indian Ocean International Bank Mauritius during his stint in overseas expansion wing.

Over the last three decades, Khara has handled departments like associates and subsidiaries, global banking in SBI, Corporate Accounts Group and International Banking Group.

Khara holds a Masters in Business Administration from FMS New Delhi and is a post-graduate in Commerce. He is also a Certified Associate of Indian Institute of Bankers (CAIIB). Prior to being appointed as SBI MD, Khara was the MD and CEO of SBI Funds Management Pvt. Ltd.
First Published on Oct 7, 2020 05:28 pm
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