State Bank of India (SBI) chairman Dinesh Kumar Khara on Monday said that the lender had done “well in terms of growth” in corporate and retail sectors during the first quarter (Q1) of the current financial year 2022-23 (FY23).
In Q1, SBI reported a 6.70 per cent year-on-year drop in net profit, at Rs 6,068.08 crore, compared with Rs 6,504 crore in the same quarter last year.
In an interview with Business Today TV, The SBI chief termed the lower June quarter numbers as a “revaluation impact”.
When asked about the non-performing assets (NPAs), he said: “We are very well insulated from any potential risks. NPA gross ratios are much less than 1 per cent, and I don’t see any challenge, as far as our loan book is concerned.”
He also stated that a decent demand could be seen in infrastructure, NBFCs (non-banking financial companies), oil, gas distribution and the airport sector.
The SBI chief said the upcoming festive season would see a “tad better rise” in demand and have to “really watch & wait” depending on how the situation pans out in the remainder of this year.
In response to a question about SBI’s holdings in Yes Bank, Khara said: “Just before the equity infusion, our stake was 30 per cent. And we are required to maintain 26 per cent of stake till March 31, 2023. We have not taken any decision on what will be our future course of action.”
On the economic front, the SBI chairman said that “the $5 trillion economy is actually a reality. We’ve already seen that exports have become a growth leader, and going forward, it will further strengthen.”
In addition, he said that the focus on PLI (Production Linked Incentive Scheme) would bring in a sharper focus on manufacturing in the economy. It would help India to become a “manufacturing hub,” he added.
Shares of India’s largest PSU bank closed at Rs 520.10, down 2.06 per cent, on Monday with the Sensex rising 465 points to 58,853 and Nifty gaining 127 points to 17,525.