State Bank of India chairman Rajnish Kumar has said the year 2020 would be a year of “happiness” with better credit growth and lower bad loans ratio. “This is a year of hope (2018-19) and financial year 2020 you can consider to be a year of happiness,” Kumar said. SBI, which saw a sharp jump in bad loans and losses in 2017-18, expects a compound annual growth rate for credit of 12 per cent by 2020, and aims for a gross non-performing advances ratio of under 6 per cent by March 2020, he said. Read | SBI posts record Rs 7,718-crore Q4 loss, NPAs at 10.9 per cent On competition, Kumar said SBI was competing with private banks and NBFCs. “We’re not competing with other PSU banks. We would like to support them,” he said. SBI will sell 3-5 per cent stake in its general insurance subsidiary SBI General Insurance this fiscal. “We are in an active mode to unlock value in our subsidiaries this year,” he said.
