"When the spread is under pressure, we need to leverage our balance sheet strength... The focus is on volume-driven business and value-added pricing," said new SBI chairman MP Radhakrishnan on Tuesday in an exclusive interview with The Financial Express.

Other priorities before the new chairman -- who will have a short two-month stint at the helm -- include paring the net non-performing assets (NPAs) level to below 5 per cent and turning the bank technology savvy.

"I want to continue with the bank's vision 2000. There will not be any policy change... I am for continuity," Radhakrishnan said. His seven-point agends is:

* Focussing on volume-driven business;

* Opting for value-added pricing;

* Emphasising on technology upgradation;

* Leveraging the balance sheet strength;

* Opening 100 exclusive branches for personal banking;

*Strengthening delivery system; and

* Going for universal banking.

Radhakrishan is all set to bring down the bank's NPA level with renewed vigour. "Lowering of NPAs will be given top priority and this will be done through improved risk management techniques," he said.

"We have to come to contain the net NPA levels. Although it is currently at 6 per cent, I intend to bring it down to 5 per cent through more focussed recovery drives and better training of officers handling recoveries," he added.

According to him, more debt-recovery tribunals have to be set up and the legal system, which allows settlements suits to drag on for more than a decade, has to be changed so that settlements can be reached in a year. "Better recoveries will only boost the bank's profitablity," Radhakrishnan said.

He made it clear that he will continue with former chairman MS Verma's blueprint for taking the bank into the 21st century. "I was part of the team which prepared the plan. I would like to take it forward. I want toemphasise that information technology (IT) will remain the key to our march into the new milliennium," Radhakrishnan said.

"With growing disintermediation, income from fund-based activities will come down and spreads will be under pressure, but we will have to leverage the massive balance sheet size... The growing emphasis will be on non-fund based activities," he said.

Promising to take the fight to the camp of foreign and new private banks which already have niches for them, Radhakrishnan said, treasury operations will continue to remain a focal point during his tenure. "The partially merged treasury department is a necessity as we can make decisions faster and this helps in adding to profits," he said.

The bank has recently merged its domestic treasury operation by shifting the foreign exchange department from Calcutta to Mumbai in the face of stiff opposition from trade unions and the CPI(M)-led West Bengal government.