Prime lending rate to stay flat: SBI
There is enough liquidity in the market and credit growth is slow
Speaking to the reporters on the sidelines of a press conference on its Q4 results, O P Bhatt, managing director, SBI, said, "PLR is not going to rise. There is enough liquidity in the market and credit growth is slow. There is hardly any chance of upward revision of PLR."
Regarding the launch of a separate holding company for its life insurance business, Bhatt said, "We have enough capital to infuse in SBI Life for two years. If the holding company norms do not come out, we will list it," adding, "We do not have any listing plans this year."
The bank has shortlisted two joint venture partners for the business and the choice was expected to be finalised this month.
The net non-performing assets (NPA) of SBI increased to 1.78 per cent this year from 1.56 last year, on account of farm waiver scheme and increase in retail NPA due to high EMI.
The gross agriculture sector NPA of SBI was Rs 700 crore at present.
On the merger of State Bank of Saurashtra and SBI, he said, "The issue is with the government. Once the government clears it, we will decide on the road map for the merger of other associate banks."
SBI will open 2,000 additional branches this year, with 1,000 in rural areas.It plans to open 10,000 branches in the next two years in the rural areas.
The bank expects a 25 per cent advance growth this fiscal.