Modest recovery underway, says SBI chief Arundhati Bhattacharya

"FY16 is expected to be more promising than the previous year. The economy is poised to recover moderately with industrial production gaining momentum and the pro-reform policies will act as a catalyst to bring the desired results," Bhattacharya said shareholders. Bhattacharya said with the ebbing inflationary pressures, there may be further scope for monetary stimulus to pump up domestic demand. On monsoon, she further said the risk of deficit monsoon seems to be dissipating with more than adequate rainfall in June.

"Looking ahead, <g data-gr-id="34">boost</g> to exports in the backdrop of global economic recovery and improvement in <g data-gr-id="35">domestic</g> investment climate, backed by various initiatives of the government, supports favourable growth outlook," she said. Bhattacharya said after taking charge in October 2013, she had set six goals-NPA <g data-gr-id="33">reduction</g>, risk management, cost control, improving delivery standards, higher non-interest income and leveraging technologies.

"As I look back today, tangible progress has been made on all the six fronts. Risks due to NPAs have been contained against all odds," she said. Bank's progress under Basel III transition and hence <g data-gr-id="31">migration</g> to advanced approach to risk management are on schedule, she added. "We are striving to control cost without compromising future growth," she said. 

Bhattacharya said the performance on non-interest income has been satisfactory during the past financial year and the bank will continue to diversify its income sources. In FY15, the bank's standalone net profit increased by 20.3 per cent to Rs 13,102 crore, while the group net grew at a healthy 19.9 per cent to Rs 16,994 crore from Rs 14,174 crore last year.

"The robust growth in profit was achieved by <g data-gr-id="49">a efficiently</g> deploying the available funds in capital markets which boosted other income by Rs 4,023 crore and by monitoring loan book rigorously to prevent the erosion in interest income,"she said.