He also said that deposit growth has slowed down to 8% YoY.
The bank has aimed for modest credit expansion of 10-12 percent in FY20.
The Centre has urged state-run banks, led by SBI, to convert debt into equity and take a stake in Jet, which would however be "transitory", in a rare move in India to use taxpayer money to save a struggling private sector company.
Kumar was responding to a query on why the bank had not cut the marginal cost of funds based lending rates
Section 29 (A) of the IBC deals with related-party provisioning and aims to prevent defaulting promoters from taking back their companies.
It is an engineering, procurement and construction (EPC) contractor, holding assets as well as its finances - it was a 3-in-1, Kumar said, adding that whether it is banks or non-banking financial companies (NBFCs), if they are in infrastructure financing, they have faced trouble in India.
Elaborating further on the issue of NPAs, Kumar said last year the system was struggling with higher and elevated NPAs and largely it was the steel and power sectors that got impacted the most.
This comes against the backdrop of the Supreme Court judgement September 26 declaring Aadhaar scheme as constitutionally valid, even as it struck down some of its provisions.
The Supreme Court has asked the banks to maintain status quo and not to initiate insolvency proceedings against defaulting power companies till November 11, 2018, when it would hear the case again.
SBI last year merged with itself five of its subsidiary banks and taking over Bharatiya Mahila Bank, catapulting it to be among top 50 global lenders.
Apportioning the blame for bad loans, which has almost touched 12 per cent of the system, on the government, the judiciary, banks and slimy borrowers, he said, "instead of lessening credit risk, consortium lending has mostly increased the pain as inordinate delay in loan appraisal, has most of the time, killed projects."
Jet, India's biggest full service carrier, told staff earlier this month it was running out of money, but it has denied this and said it is confident of cutting costs and keeping its planes flying.
On June 8, finance minister Piyush Goyal had announced formation of a committee under the chairmanship of PNB non-executive chairman Sunil Mehta and the SBI chairman and Bank of Baroda managing director PS Jayakumar as members.
Rajnish Kumar said Rs 78,000 crore of losses are in the first two lists of the NCLT and hence expects the recovery this financial year itself.
Privatisation has not always worked well, and ownership does not matter as there are both good and bad companies in both private and public sectors, he said.
The finance ministry said earlier this week that there is an unusual spurt in demand in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar. In the first 13 days of the current month, the currency demand went up by Rs 45,000 crore.
"If you look at the bond yields, they have gone up in the recent past. So, I think the headroom available for cutting down the interest rates, both deposit and lending (seems limited). Deposit rate unless you cut you cannot cut lending rate ... for time being we are in for much more stable interest rate," he said.
The SBI chief said that very often the issue our credit committee will face is that if you don't do this business at a particular price it will go to other banks and that is when the question of protecting turf arises.
Kumar, who assumed office as the 25th chairman of SBI last Saturday for a three-year tenor, has reshuffled various business verticals headed by wholetime directors.
In the letter, Kumar said while performance and productivity are non-negotiable, employees must pay attention to their health and maintain a strike a proper work-life balance.
India's state banks, including SBI, the country's largest, have battled rising bad loans in recent years, a fight that has dampened credit growth and slowed a long-awaited economic revival. But Bhattacharya predicted better days ahead for the bank after a spike in sour debt in the last quarter due to a merger with five subsidiaries.
The bank's chairman designate also pointed out that muted corporate credit is a cause of concern and the bank will look at extracting the maximum enterprise value from NPAs under resolution.
SBI, which accounts for more than a fifth of India's banking assets, has seen bad loans rise after it absorbed five subsidiary banks earlier this year.
A look at top cues from domestic and international cues that could have a bearing on D-Street.
It will be my responsibility to carry forward the work done by Arundhati Bhattacharya, said newly appointed State Bank of India (SBI) Chairman, Rajnish Kumar in an interview to CNBC-TV18.