The bank's gross bad loans stood at 6.61 per cent and the net NPAs were 5.11 per cent during FY21.
However, the lender has been able to register a near three-fold rise in net profit to Rs 312 crore for the year ended March 2021 (FY21), up from Rs 111 crore in FY20.
According to sources, the proposal is before the Cabinet and its nod is required to extend sovereign guarantee to security receipts issued by NARCL.
Year-on-year Q4FY21 net interest income increased by 18.89 per cent to Rs 27,067 crore from Rs 22,767 crore reported for Q4FY20.
While the headline asset quality and restructuring numbers are encouraging, these don’t reflect the underlying stress, it noted.
Rajan also made a case for strengthening the recovery process and distance public sector banks from the government.
Modi targeted the Congress’ ‘phone banking’ culture whereby the party high command would dial PSU bank chiefs to facilitate loans to corporates of their choice.
The RBI circular asks banks to identify projects with even a day's default as stressed assets, and conclude resolution proceedings in 180 days.
The SBI is in talks with other banks over the potential resolution and, managing director Arijit Basu said, many investors have already expressed their interest.
Total income during the said quarter was down at Rs 256.36 crore from Rs 287.25 crore a year ago, the bank said in a regulatory filing.
Kerala launched a Rs 900-crore ELRS scheme to help students from families with annual income below Rs 6 lakh repay their education loans.
Sources also hint that the creation of the ICA framework was largely due to less than anticipated success rate of the Insolvency and Bankruptcy Code, which aims at resolving cases in a time-bound way.
Stock of SBI was trading 5.2 per cent up at Rs 257.85 on BSE in afternoon trade.
Kotak Mahindra Bank has replaced the largest state owned bank State Bank of India in the list of the country’s 10 most valued companies in the aftermath of a series of banking frauds and NPAs.
Unlike many other financial fugitives, Nirav Modi’s wherabaouts are unknown, and hence extradition proceedings cannot be launched against him.