High bad debts temporary, says SBI
SBI’s NPAs rose to 5.15% in the second quarter ended September from 4.19% over the year-ago period because of deteriorating asset quality. He said the bank has made adequate provisioning norms. “We have been providing in excess of the prudential provisions. Whatever the Reserve Bank asked us to provide, we have been providing that, plus a little more,” he said. The Reserve Bank recently increased the provisioning for standard restructured assets for banks to 2.75% from 2%.
Replying to a query on Kingfisher Airlines’ revival plans, SBI’s managing director said there is no need to panic as long as there are assurances from the airline. “Kingfisher has been a good airline at some point of time. They are going through their set of problems. And there is no reason for bankers to panic as long as they say that they are looking for a solution. The assurance only is that they are trying,” he said.
SBI is the lead banker in the 17-lenders consortium that
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