{"id":1098,"date":"2019-10-25T22:51:01","date_gmt":"2019-10-25T22:51:01","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/10\/25\/sbi-will-cap-fy20-slippages-to-2-of-loan-book-says-state-bank-of-india-chairman\/"},"modified":"2019-10-25T22:51:01","modified_gmt":"2019-10-25T22:51:01","slug":"sbi-will-cap-fy20-slippages-to-2-of-loan-book-says-state-bank-of-india-chairman","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/10\/25\/sbi-will-cap-fy20-slippages-to-2-of-loan-book-says-state-bank-of-india-chairman\/","title":{"rendered":"SBI will cap FY20 slippages to 2% of loan book, says State Bank of India chairman"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1746366\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-1020.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-1020.jpg 660w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1746366\" src=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-1020.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/10\/cats-1020.jpg 660w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/10\/cats-1020-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">If any high-value account slips during that quarter \u2014 like in the June quarter there was `16,000 crore which was due to agriculture \u2014 then that quarter will not look good.<\/span><\/figure>\n<\/div>\n<p>State Bank of India (SBI) expects to restrict slippages for FY20 to 2% of the loan book, chairman Rajnish Kumar told reporters after the bank\u2019s Q2 results. The bank will stick to its full-year credit growth guidance of 12-14%, he added.<\/p>\n<p>Edited excerpts:<\/p>\n<p><strong>What do you expect slippages to be like for the rest of the year?<\/strong><\/p>\n<p>There is a baseline scenario for the bank and then there are exceptions. If you look at the baseline scenario, the gross slippages in NPAs (non-performing assets) are in the range of Rs 32,000-33,000 crore, which is normal. It includes accounts which keep on slipping and there are two accounts, one of which is phased restructuring and one is a stressed NBFC (non-banking financial company), which has so far not turned NPA in this financial year, but it is likely to come in this quarter.<\/p>\n<p>So, overall, if baseline is Rs 32,000 crore or Rs 34,000 crore for the bank, which is 1.6% of our current loan book, and then there are slippages of different kind for which we should have provision. I\u2019m not talking quarter-on-quarter; June and September quarters are good, but December and March, there may be some number. But ultimately, we have reached a situation where our gross slippages, in not so good circumstances, are not likely to exceed 2%.<\/p>\n<p><strong>What is your assessment of the telecom sector, in the light of the adjusted gross revenue ruling on Thursday?<\/strong><\/p>\n<p>Market has a tendency of showing exuberance for no reason and overly worrying with no reason. Whatever is the macro scenario is not in our control.<br \/>If we do a deep-dive analysis, there would be structured obligation and the government has allowed restructuring. If anything happens then the not-so-good scenario of 2% will play out. This is our normal level of slippage of Rs 8,000 crore per quarter. If any high-value account slips during that quarter \u2014 like in the June quarter there was `16,000 crore which was due to agriculture \u2014 then that quarter will not look good.<\/p>\n<p><strong>What is your forecast for recoveries?<\/strong><\/p>\n<p>By November 15, we are hopeful the judgment will come for one account. There are three-four large cases and we are hoping there will be a resolution. Leaving aside exceptional recovery, our PPOP (pre-provisioning operating profit) will be Rs 17,000 crore and we are close to achieving that by March 2020.<br \/>What is your approach with respect to a stressed mortgage lender. You have approached the finance ministry and do you see a resolution not happening there?<br \/>I never discuss individual accounts and as far as SBI is concerned, we have the capability to deal with the account and we will.<\/p>\n<div class=\"common-bottom-text\">\n<p>For latest coverage on <a href=\"https:\/\/www.financialexpress.com\/elections\/maharashtra-election-constituencies-list\/\" target=\"_blank\" rel=\"noopener noreferrer\">Maharashtra Assembly Election 2019<\/a> and <a href=\"https:\/\/www.financialexpress.com\/elections\/haryana-election-constituencies-list\/\" target=\"_blank\" rel=\"noopener noreferrer\">Haryana Assembly Election 2019<\/a>, log on to <a href=\"https:\/\/www.financialexpress.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">financialexpress.com<\/a>. We bring you full coverage of <a href=\"https:\/\/www.financialexpress.com\/elections\/\" target=\"_blank\" rel=\"noopener noreferrer\">Assembly Election 2019<\/a> on Financial Express, stay tuned for latest election updates. <\/p>\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] If any high-value account slips during that quarter \u2014 like in the June quarter there was `16,000 crore which was due to agriculture \u2014 then that quarter will not look good. State Bank of India (SBI) expects to restrict slippages for FY20 to 2% of the loan book, chairman Rajnish Kumar told reporters after [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1098"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1099"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}