Jan-Mar quarter gross NPA comes down to 4.5 pc, says SBI chief

SBI today said its gross non performing assets ratio has come down to 4.5 per cent in the fourth quarter ended March, down from 5.3 per cent in the preceding three-month period, hinting that the nation's largest bank has been able to improve asset quality.
"Our gross non-performing assets ratio has come down to 4.5 per cent," Chairman Pratip Chaudhuri told reporters here, adding the numbers are provisional as the bank's fourth quarter earnings are yet to be audited.
On absolute basis, the gross non-performing assets have come down to Rs 49,000 crore from the Rs 52,000 crore earlier in Q3 (October-December), he said, attributing the improvement to both cash recoveries and upgradation of accounts.

The bank saw around Rs 1,500 crore of loans getting restructured during the March quarter, he said.
When asked about the Finance Ministry directive to get the net NPAs down to 1 per cent this fiscal, Chaudhuri said the bank would strive to adhere to it.
During the third quarter, the bank witnessed a rise in bad assets as gross NPA level touched a whopping 5.30 per cent compared to 4.61 per cent reported in the same period last fiscal with fresh slippages of over Rs 8,100 crore reported during the quarter.

In the just-concluded FY13, the bank registered an advances growth of 21 per cent as against the 16.5 per cent in the previous fiscal and a 14.88 per cent rise in deposits, Chaudhuri said.

The high growth in advances was made possible because of a late pick-up from the corporates for working capital requirements in February and March, he said, adding that on the deposits front, it was able to get down the percentage of the high cost bulk deposits to 1 per cent from the 4.5 per cent the year ago.
On the margins front, the bank has been able to maintain them in the 3.70-3.75 per cent range, the chairman added.