State Bank of India (SBI) surged in trade today after reporting healthy earnings for the third quarter. The stock jumped over 2 percent as net interest income surpassed estimates and asset quality remained stable. However, loan growth was a disappointment.
Speaking to CNBC-TV18, SBI Chairman Rajnish Kumar shared his views on the bank's performance. “By March 31, our credit cost would not be very high. We are also not expecting more than Rs 6,000 crore as slippages in FY20,” the chairman noted.
While giving details about agricultural slippages, Kumar said: “I am not expecting any relief, we are just expecting that there will be clearer guidelines on how do you classify agricultural accounts. There is some confusion in our minds around the way the accounts under agriculture have been treated in the past and that is where we are expecting a clarification.”
Speaking about slippages, he said: “Our assessment is that given the size of the profit book, if there is no large account then our slippage should not be more than Rs 10,000 crore and in retail, it should not be more than Rs 20,000 crore or thereabout. So we are looking at fresh slippages of around Rs 35,000 crore.”