SBI has exposure of Rs 78,000 crore from big corporate defaulters identified by RBI

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Published: February 12, 2018 1:50:31 PM

SBI Chairman Rajnish Kumar said that the bank has an exposure of Rs 78,000 crore from the companies with big corporate defaults identified by the RBI and they are likely to get resolved by April.

SBI chairman, sbi, state bank of india, sbi news, new sbi chairman, Rajnish Kumar,SBI has exposure of Rs 78,000 crore from big corporate defaulters identified by RBI. (ANI image)

India’s biggest lender State Bank of India reported unearthed about net non performing assets (NPA) worth Rs 1,02,370.12 crore in the third quarter of the fiscal year 2017-2018, leading to its first loss in 19 years. This is in addition to an exposure of Rs 78,000 crore from big corporate defaulters who were identified by the Reserve Bank of India in its first and second list for resolution in the insolvency court.

SBI Chairman Rajnish Kumar told ET Now that the bank has an exposure of Rs 78,000 crore from the companies identified by the RBI and they are likely to get resolved by April. The central bank in June identified twelve companies with loan defaults above Rs 5 lakh crore for immediate resolution by the National Company Law Tribunal under the Insolvency and Bankruptcy Code (IBC), and later in December identified about 28 other companies. In most cases, SBI is the biggest lender.

“All exposure in companies in the NCLT list under NPA have a provision of 60%,” Rajnish Kumar told the news channel, adding that the capital infusion of Rs 8,800 crore by the government will be used by the bank for growth and not as capital risks.

The Narendra Modi government in October last year announced a massive Rs 2.11 lakh crore bank recapitalisation plan to clean-up balance sheets of Public Sector Banks (PSBs) reeling under a huge pile of bad loans. Of this, the government has already announced capital infusion of Rs 80,000 crore and the SBI has been given Rs 8,800 crore.

So far, the bank has initiated insolvency proceedings under IBC against many companies including Videocon. The bank is hoping to get a clarity on them by February end and a proper resolution on a major chunk of NPAs by April.

Post the shocking third quarter results by SBI, its shares tanked nearly 4% on Monday. The stock of SBI fell as much as 3.84% to a day’s low of Rs 285 on BSE while the stock crashed to a day’s low of Rs 285.15, down by 3.79%.

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