India’s biggest lender, State Bank of India has posted a Rs. 674 crore increase in its non performing assets in the 4th quarter of the financial year just ended. This increase in NPAs can be credited to the corporate sector. But the NPAs of its agricultural loans along with the retail loan portion including personal loans have shown improvement.
The large and medium corporates’ NPAs has reported a massive increase in the 4th quarter accounting by as much as Rs. 1,062 crore while the manufacturing sector constituted for NPA increase by Rs. 107 crore. This increase has been cancelled to certain extent by the Rs. 74 crore reduction in agricultural NPAs and Rs. 332 crore reduction reported by the retail sector.
From the total amount of assets which the bank had restructured according to RBI which was worth Rs. 16,796 crore, about Rs. 1,616 crore has entered into the NPA section as of March 2010.
SBI Chairman, O.P.Bhatt said, the increase in NPAs has been controlled which reduced increase in the gross NPA level.
The bank has made a loan loss provision of Rs. 2,187 crore in the quarter under consideration as compared to Rs. 1,296 crore in the same quarter of 2008-09.