New Delhi: Country's largest lender State Bank of India (SBI), which saw a drop in bad loans in the July-September quarter, has stepped up efforts to bring down NPAs further to the last financial year's level.


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"We have taken various steps to control NPA. We will not allow it to rise during the current fiscal," SBI Managing Director Rajnish Kumar told PTI.


The gross NPAs of the bank were at Rs 56,725 crore, or 4.2 per cent of the total advances, at the end of March 2015.


Asset quality of the bank improved to 4.15 per cent in July-September 2015 from 4.89 per cent or at Rs 58,834 crore in previous quarter. The net NPA stood at 2.14 per cent in second quarter from 2.73 per cent or at Rs 28,592 crore in the first quarter.


Giving details of NPA situation, Kumar said, bad loans differ from sector to sector.


"If you look at our portfolio, most of the NPAs are SME and mid-corporate. In personal segment we don't have NPA which is beyond tolerance level," he said.


There are issues with regard to small and medium enterprises and mid-corporate segment, he said, adding the bank is taking steps like assessing situation of each and every account and preparing solution and effective engagement with borrowers.


Besides, the bank has also stepped up recovery process, he added.


"The situation will get better with improvement in the macroeconomic situation, rise in government spending and cash flow starts moving into the system," he said.


With the improvement, he said, relief would come to these segments.


SBI reported 25.12 per cent jump in net profit at Rs 3,879 crore for the September quarter, driven by drop in bad loans, higher non-interest income and robust loan growth.


The non-interest income jumped 35.58 per cent to Rs 6,197 crore from Rs 4,571 crore, primarily boosted by a hefty Rs 485 crore repatriation of profits from its foreign operations, which on an average contributes to a fourth of the bank's business.


Similarly, treasury income skyrocketed to Rs 1,493 crore from a little over Rs 490 crore a year ago.