State Bank of India’s quarterly profit surged, owing to a fall in provisions and an exceptional gain.
Loans Under Moratorium
Of the Rs 16-lakh-crore worth of term loans, 9.5% is under moratorium as allowed by the Reserve Bank of India. These are the accounts where borrowers have paid less than two monthly installments since March. Most accounts under moratorium belong to corporate borrowers and the bank expects them to start paying normally from September, Kumar said.
The SBI chairman said Rs 42,000 crore worth loans were classified as special mention accounts as on March 1. These are the accounts where borrowers have not repaid their loans on the due date, but the account is still performing. Of these special mention accounts, only Rs 13,000 crore worth loans have seen one or less installment paid till June.
“This shows that without the moratorium, our gross NPA would have gone up by only Rs 13,000 crore by June. We, however, expect that more of these borrowers will pay regularly once the moratorium lifts,” Kumar said.
Advances & Deposits
SBI's outstanding advances rose 6.58% year-on-year to Rs 23.85 lakh crore as on June 30. Deposits rose 16% from a year ago to Rs 34.2 lakh crore. The growth in advances was mainly aided by retail advances and foreign office advances, which rose 12.85% and 11.19% year-on-year, respectively.
“We are currently sitting on nearly Rs 1 lakh crore worth sanctions pipeline in our project finance business. As these disbursements happen, we will be able to deploy more of the liquidity we have garnered through deposits. We are certain that other segments will also show signs of credit demand in the coming months,” Kumar said.
Shares of SBI rose as much as 4.1% to Rs 194.25 apiece after the results were announced, compared with a 0.5% drop in the benchmark Nifty 50 Index.
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