The country’s largest lender State Bank of India on Tuesday said there is no magic wand to deal with bad loans and banks will have to wait for a revival in the
“We are seeing some lessening of stress but … there is no magic wand, we have to work through our way. As the GDP goes up, demand goes up, the capital market will begin to respond, people are able to raise equity, we will see things becoming better,” said SBI chairperson Arundhati Bhattacharya.
SBI’s non-performing assets jumped up to Rs 61,605.35 crore, or 4.95 per cent of total advances, at the end of March from Rs 51,189.39 crore, or 4.75 per cent, in FY13. The lender also bank’s net profit tanked to Rs 10,891.17 crore in 2013-14 from Rs 14,104.98 in the previous financial year.
But Bhattacharya stressed that the bank is working on various solutions to address the high NPAs. The SBI chairperson, however, said that the bank is at present not working on fund raising plans but will take a call only when credit growth strengthens.