State Bank Of India, the largest lender in India, expects the loan book to grow by 9% in Fiscal Year 2022
Despite the intensity of the covid-19 second wave, the economy of India is resilient and is impassive in its recovery. The loan book of SBI had grown by 4.8% in FY21, and the lender expects further growth in the next year. The chairman of State Bank Of India, Mr Dinesh Khara, said,
” I am cautiously optimistic that the performance trajectory of FY21 will continue in FY22 as well,” in the virtual annual general meeting.
Mr Khara further said that FY21 begun with an unexpected wave of spread, and although the government has now included avoiding complete lockdown, the economic impact will still be felt.
He added that the bank is now well equipped to meet the credit growth in the upcoming days and that the capital adequacy of the bank stands at 13.74%, which is reasonably comfortable.
Rs 14,000 crore to raise capital through bonds was approved by the board members last week. The chairman referring to the stress asset management said that with the roll-out pre-package for the resumption of courts, Nation Asset Reconstruction Company’s formation would fully recover stressed assets in this current Fiscal year.
The pandemic and its consequent lockdown have altered the dynamics of a stressed asset in FY21, but despite this, the bank reduced the level of gross Non-Performing Assets(NPA) considerably.