The bank ’ s loss for this quarter was more than what the market had expected . According to analysts , the quarterly losses were expected to be around `1,285 crore . In the December quarter , the bank had posted a loss of `2,416 crore . The SBI management has , however , projected an upbeat mood and indicated recovery in the next two years , promptng its share prices to rise by 4 per cent . “ The industry has gone through a challenging phase and SBI is no exception . But , I can confidently say that while last year was the year of disappointment , this will be the year of hope and next year will be the year of happiness ,” said
SBI Chairman Rajnish Kumar during an interaction with reporters in Mumbai . SBI accounts for more than a fifth of India ’ s banking assets . The bank said that it aims to improve margins , bring down provisioning costs and expand loans at an annual average of 12 per cent through March 2020 , which is nearly half its gross non-performing loan ratio . The bank ’ s provisions and contingencies increased to `28,096 crore in the current quarter as compared to `11,740 crore during the same period last year . Gross bad loans , as a percentage of total loans stood at 10.91 per cent at the end of the March quarter , compared with 6.90 per cent during the corresponding period a year ago , and 10.35 per cent in the quarter previous to that . The bank ’ s operating profit declined by 8.24 per cent to `15,883 crore in this quarter . CASA ( current account and savings account ) ratio stood at a healthy 45.68 per cent . The management had been indicating that the quarterly period would be “ very bad ”, so losses were expected , and the market responded with the belief that the worst is over . Thus , at the end of the trading session just after the results were announced , the banks ’ share prices rose by 4 per cent despite tepid performance in the last quarter . “ We have put the past behind us . The last three years have been challenging , but in any organisation ’ s history , these kinds of situations do come . But what matters is that we are a much stronger organisation than what we were two years ago . We are poised for growth in a riskmitigated manner ,” said Kumar .
By Suyash Desai
India Has 150mn Non-Active Credit Consumers : Study
Nearly 150 million consumers who are currently not credit-active are eligible to become retail credit borrowers in the future , says a study prepared by Mumbai-based credit bureau , TransUnion CIBIL .
This provides huge growth opportunities for retail lenders and borrowers who can tap into this market , the report adds .
It estimates that the total population of credit-eligible consumers in India is roughly 220 million . Of this eligible population , only about one-third , or 72 million , are currently credit-active , or those who have a live account with a bank or a lending institution .
The remainder 150 million are not credit active , but would meet the age and income requirements that would make them potentially attractive to lenders . This group includes both consumers who were previously credit active but are currently dormant , and those who have never availed a retail loan or credit card .
“ After significant growth in retail lending over the past decade , many lenders and industry observers have asked whether the retail credit market is nearing the saturation point and could soon face a slowdown . Our study paints a much brighter picture for the industry ,” said Yogendra Singh , vice president , research and consulting , TransUnion CIBIL .
By Suyash Desai
www . outlookmoney . com June 2018 Outlook Money 15