State Bank of India (SBI) will look to list its asset management company (AMC) first and then non-life insurance, Dinesh Kumar Khara, chairman, told CNBC-TV18.
The country’s largest lender reported a sharp 55.3 percent rise in net profit for the first quarter of the current fiscal at Rs 6,504 crore as compared to Rs 4,189.3 crore.
The bank posted a net interest income (NII) of Rs 27,638 crore in Q1FY22, registering a growth of 3.7 percent from Rs 26,641.6 crore, YoY.
Speaking in an interview with CNBC-TV18, Khara said, “When it comes to maturity, it’s the AMC which is matured and followed by that would be our non-life insurance company also, but we are very closely monitoring these companies and also nurturing them well so that we should be in a position to monetise them at the best possible price.”
On growth, he said, “We have been growing at 1 percent plus the gross domestic product (GDP) growth and as per estimates, the GDP growth is expected at around 8-9 percent. So we should be in a position to grow at about 9 percent.”
“We already are processing proposals worth Rs 3 lakh crore as far as credit growth is concerned and with the renewed confidence in the economy, we will see the availment also. If we look at our unavailed facilities and the loan proposals which are under process for large and mid-corporate, government sector, all together are more than Rs 350,000 crore plus. So the growth is in the offing, but the only thing is that demand and confidence should come back and for that, the COVID-19 vaccination holds the key,” he said.
On Vodafone-Idea, Khara said, “This is one such account where there is a lot of critical dependence on all of us, but nevertheless considering the promoter and various stakeholders, I am hopeful that there would be some resolution in this account also.”
According to him, steps like Emergency Credit Line Guarantee Scheme (ECLGS) loans, taken by the Reserve Bank of India (RBI) and government for the Small and medium-sized enterprises (SME) sector are positive.
For the entire management interview, watch the video.