homefinance News

SBI chairman Rajnish Kumar says by fiscal end banking industry's NPA situation to improve

SBI chairman Rajnish Kumar says by fiscal-end banking industry's NPA situation to improve

SBI chairman Rajnish Kumar says by fiscal-end banking industry's NPA situation to improve
Profile image

By PTI Dec 21, 2019 2:54:29 PM IST (Updated)

SBI Chairman Rajnish Kumar on Saturday said most banks will be in a good position with respect to stressed assets by March and there is no dearth of liquidity in the system for lending.

SBI chairman Rajnish Kumar on Saturday said most banks will be in a good position with respect to stressed assets by March and there is no dearth of liquidity in the system for lending.

Recommended Articles

View All

He added that there are opportunities to lend in sectors such as infrastructure and consumer lending as there is not much of a decline in demand from consumers.
"By March 31st, most of the banks will be in a good position with respect to stressed assets," Kumar said at the 92nd Annual Convention of industry chamber FICCI in New Delhi.
On the transmission of monetary policy, he said the banks cannot lower rates beyond a threshold due to asset-liability mismatch issues.
Kumar stated that there is no shortage of capital in the system, but the corporates are not borrowing enough and not utilising their capacities well.
On lending to the telecom sector for the next round of spectrum auctions, he said, "For us, lending to the telecom sector for spectrum is completely unsecured. On paper, it is secured as the auction is to be done by the government but practically it is totally unsecured."
"So in such circumstances, banks will have to evaluate carefully before lending to the sector as the probability of default is very high," Kumar said.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng