SBI mulls NPA sales to ARCs in this quarter
9 March 2014 12:02 AM GMT
‘We are considering some proposals to sell NPAs in the current quarter (Jan-Mar 2014). This is the first time we would be selling non-performing assets to asset reconstruction companies,’ State Bank of India Chairman Arundhati Bhattacharya said here on Saturday.
NPA reduction is a major focus of the bank, she said, but declined set a target where the bank aims to bring it down by way of recovery, restructuring or hiving it off to asset reconstruction companies.
State Bank of India’s gross non-performing asset ratio rose to 5.73 per cent in the October-December quarter from 5.3 per cent over the corresponding period a year ago. The bank had restructured standard assets worth Rs 6,100 crore during the third quarter and reportedly has a loan restructuring in the pipeline worth Rs 9,500 crore.
Asked about considering fresh lending to the power sector which has been under stress for a few years, Bhattacharya said that State Bank of India is not seeing it at the moment despite some turnaround and easing of stress in the sector and may consider new projects for fresh disbursal to take place.
‘We are seeing some turnaround in the power sector. After the fuel supply agreements (FSAs) of coal have been signed, we have seen some release of stress in the power sector,’ she said when asked about the stress situation in the power and roads sectors.
NPA reduction is a major focus of the bank, she said, but declined set a target where the bank aims to bring it down by way of recovery, restructuring or hiving it off to asset reconstruction companies.
State Bank of India’s gross non-performing asset ratio rose to 5.73 per cent in the October-December quarter from 5.3 per cent over the corresponding period a year ago. The bank had restructured standard assets worth Rs 6,100 crore during the third quarter and reportedly has a loan restructuring in the pipeline worth Rs 9,500 crore.
Asked about considering fresh lending to the power sector which has been under stress for a few years, Bhattacharya said that State Bank of India is not seeing it at the moment despite some turnaround and easing of stress in the sector and may consider new projects for fresh disbursal to take place.
‘We are seeing some turnaround in the power sector. After the fuel supply agreements (FSAs) of coal have been signed, we have seen some release of stress in the power sector,’ she said when asked about the stress situation in the power and roads sectors.
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