SBI to revise Q2 slippage numbers down by R1,389 cr
SBI's share price rose 1.59% to R2,190.65 at the end of trade on Monday at the BSE.
The SBI official clarified that there were some inter-quarter numbers included in both slippages and upgrades. These were accounts that slipped during the quarter and were upgraded during the same quarter. The standard practice at banks is that interquarter slippages if recovered in the same quarter are not shown either as slippages or upgrades. Therefore, SBI has now removed it from both slippages and upgrades as per standard practices. As a result the upgrades figures have also been revised from R3,000 crore to around R1,600 crore.
Slippages refer to those loan accounts that have slipped into the non-performing asset (NPA) category from a standard account. The total stressed assets (slippages + restructured loans) on account of this revision stands at R11,800 crore. The bank restructured assets to the tune of R4,694 crore during the quarter. A Standard Chartered note said that the the R1,389 crore relates to accounts including Bharti Shipyard, Hotel Leela and Bilcare. “Bharti Shipyard and Hotel Leela slipped during 2QFY13 as NPLs but were upgraded in the same quarter upon restructuring. For Bilcare the
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