State Bank of India (SBI), the country's largest public sector lender, on Tuesday is expecting a recovery of Rs 50,000 crore non-performing loans this year.
Speaking to CNBC-TV18, B Sriram, Managing Director, Corporate Banking Group, SBI, said, "We hold Rs 50,000 crore non-performing loans (NPL) on list one and we should be able to recover or rather reduce the NPLs of at least that Rs 50,000 crore."
Sriram said the bank has been able to resolve two of the twelve accounts Under National Company Law Tribunal (NCLT) and is quite hopeful that by end of September, the first list of twelve accounts should be behind us.
“We have already guided that we would be looking at both slippages as well as credit cost of around 2% and I am sure that we will be able to stick to that as part of our guidance," Sriram said.
I am sure we are well positioned in the next two-three years to create a value for the bank, which has never existed before. SBI's return on assets have never crossed or rather has been around 1% mark and I am very optimistic and bullish that that sort of figures will come in sooner than later, he further mentioned.
"We have to respect that NCLT is relatively young and there has been other ordinance which has come in recently and surely there will be testing of the law in some way or the other," he added.