SBI fears more strain on asset quality
Kolkata: Country's largest commercial bank State Bank of India (SBI) on Tuesday expressed apprehension that the bank's asset quality might deteriorate further due to contraction in factory output.
"The contraction in factory output as indicated by falling IIP will put additional pressure on banks, including SBI, on the asset quality," bank's managing director A Krishna Kumar said here at the launch of a specialised MSME branch.
He indicated that the stress on manufacturing sector and mid-corporates would continue and this would definitely put pressure on asset quality.
"SBI and other banks as well are trying to identify the stress assets," Kumar said, adding "we wish to identify the stressed assets and help those units which are showing signs of stress so they do not become non-performing," the official said.
SBI's gross NPA fell to 5.64 percent of total advances as on September 2013.