State Bank of India’s non-performing assets are likely to have peaked in Oct-Dec, but it would have to make provisions of Rs 400-500 crore every quarter to achieve 70 per cent provision coverage ratio by September 30, a senior official at the bank said.
“Our NPAs would, I think, probably peak in Q3 (Oct-Dec),” the official said. “Bulk of our NPAs have been from the agriculture portfolio.”
SBI’s net non-performing loans were 1.70 per cent of total loans as on September 30, and the bank added Rs 4,412 crore of loans during the quarter. Bad loans from its agricultural loan book were Rs 3,459 crore.