SBI Chairman says not to worry about NPA in Unsecured Retail Loans

- Advertisement -

State Bank of India Chairman Dinesh Khara on Saturday said there are no concerns over the bank’s unsecured loan portfolio and the gross non-performing assets (NPAs) in the segment is at just 0.69 per cent.

The comment from SBI comes even as Reserve Bank of India Governor Shaktikanta Das, last month, raised concerns over very high growth in certain components of personal loans.

“For us, it (unsecured loans) is not a concern at all. I have said it in the past and I still maintain my stance that our unsecured book is better than secured loans,” Khara said when asked about the outlook on unsecured loans.

What he said?

  • He said the bank’s unsecured loan book is about Rs 3.2 lakh crore, with gross NPA only at 0.69 per cent.
  • Close to 86 per cent of the bank’s unsecured loans is given to those who are maintaining a salary account with it and they are all from the government sector.
  • If armed forces, para military and public sector entities are included, then the number goes up to 94 per cent, he said.
  • Many analysts have said that there are risks of increase in delinquencies in the unsecured retail loans, especially in below Rs 50,000 category of loans. Khara clarified that SBI doesn’t have any unsecured loans below Rs 50,000.
- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

ED arrests Husband of Senior IPS Officer in Rs 263 Crore Fraud Case

Enforcement Directorate Arrests Husband of Senior IPS Officer in Rs 263 Crore Income Tax Refund Fraud Case

Retirement Planning: Invest Rs.3500 in NPS per month and get Rs.40,000 pension

Retirement Planning: Invest Rs.3500 in NPS per month and get Rs.40,000 pension

RBI infuses Rs 7.75 trillion via VRR

RBI Conducts Repo Auction to Address Rising Liquidity Deficit

SBI changes Loan Rules, Customers will have to pay more for Loan

SBI changes Loan Rules, Customers will have to pay more for Loan

Rules changed for Public Sector Enterprises, Now Finance Minister will grade CPSEs

Rules changed for Public Sector Enterprises, Now Finance Minister will grade CPSEs

Meet Priyanka Gupta who left her corporate job to fulfill her passion

Meet Priyanka Gupta who left her corporate job to fulfill her passion

Female Cashier handling all work of Branch alone, Huge staff shortage in Bank

Female Cashier handling all work of Branch alone, Huge staff shortage in Bank

Tata Power looking for $1 Billion Loan for new projects

Tata Power Plans to Raise $1 Billion for Clean Energy Projects in India

Google invests $350 Million in Flipkart

Google Invests $350 Million in Flipkart, Boosting Indian E-commerce Startup

Make in India! Google will start Manufacturing Pixel Smartphones in India

Google to Manufacture Pixel Smartphones and Drones in India

Latest News