Free Press Journal

Bad loan recoveries ‘good’ so far in Q2, says SBI

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Mumbai: State Bank of India today said bad loan recoveries in the ongoing quarter have been “good” and the country’s largest lender is looking at more innovative ways for getting money back from borrowers. “Recovery has been good. We are taking various other steps in the days to come to see that whatever we can recover, we recover faster,” lender’s deputy managing director in charge of stressed asset management M G Vaidyan told reporters when asked about the recoveries scenario during the period.

On auctions of mortgaged assets in the recent past, he said the process is being received well but declined to give details of the money raised. “In the days to come, the auctions will have various dimensions. We would like to have a wider participation, we would try to create wider awareness among public about the auctions taking place, people can acquire assets at a cheaper rate,” he said.

After the release of its quarterly numbers in August, Chairman Arundhati Bhattacharya sounded optimistic on the asset quality front saying the worst is sort of behind the bank. “Overall the stress picture is much better and with some amount of confidence I can say the recovery is having a beneficial impact in the books,” she had said. For the quarter ended June, loan loss provisions fell by 14 per cent to Rs 3,359 crore from Rs 3,903 crore last year, total provisions increased marginally by 1.31 per cent to Rs 5,510 crore from Rs 5,439 crore in the year-ago period.