SBI expects NPA levels to stay flat

State Bank of India (SBI), which is dealing with abnormal levels of NPAs at 4.9 per cent, thinks the worst is over when it comes to asset quality.

The NPA position would currently stay flattish and is expected to continue like this for the next 3-4 quarters as quantum of new loans turning NPAs seems to be coming down, said R Venkatachalam, deputy managing director and chief risk officer of the bank.

The growth and profitability in business in a range of sectors including infrastructure, steel, power and textiles were hit hard due to a variety of factors as a result loan portfolios of banks exposed to these sectors turned bad, according to other bankers.

 

“Hitting is one thing and hitting hard is another thing. The severity is coming down,” Venkatachalam said in a panel discussion at the ISB here on Saturday.