Non-performing assets in SMEs are a challenge: SBI
Updated: May 24, 2013 01:52:04pm
Kolkata, May 24 (KNN) The non-performing assets in small and medium enterprises (SMEs) and agriculture are a challenge for State Bank of India (SBI) which has suffered 18.5 per cent drop in its net profit.
“We are operating under challenging circumstances and the non-performing assets in agriculture, mid-corporates and small and medium enterprises are still a challenge,” said Chairman SBI, Pratip Chaudhuri here yesterday.
Its profit dropped to Rs 3,299 crore during the fourth quarter ended on March 31, 2013 from Rs 4,050 crore a year ago.
However, for the fiscal 2012-13 as a whole, the net profit rose by 20.5 per cent to Rs 14, 105 crore.
The SBI Chairman described the results as “a mixed bag” saying that the bank had significantly enhanced its provisioning.
“We have tried to protect investor interest, and we have significantly enhanced the provision coverage ratio (at 66.58 per cent in the March quarter against 61.5 in the previous quarter),” he said.
The Chairman further said, it continued to face challenges in the mid and small-sized companies segment.
Earlier, SBI posted its first quarterly net profit drop in two years, missing market estimates after being dragged down by lower interest income and higher provisions for loan losses.
In an economy witnessing demand slowdown, the SMEs are facing heat from the banks for repayment of loans.
Several banks have gone in for recovery of debts through assets sale and going to the extent of publishing photographs of the entrepreneurs who have failed to repay the loans. (KNN)
“We are operating under challenging circumstances and the non-performing assets in agriculture, mid-corporates and small and medium enterprises are still a challenge,” said Chairman SBI, Pratip Chaudhuri here yesterday.
Its profit dropped to Rs 3,299 crore during the fourth quarter ended on March 31, 2013 from Rs 4,050 crore a year ago.
However, for the fiscal 2012-13 as a whole, the net profit rose by 20.5 per cent to Rs 14, 105 crore.
The SBI Chairman described the results as “a mixed bag” saying that the bank had significantly enhanced its provisioning.
“We have tried to protect investor interest, and we have significantly enhanced the provision coverage ratio (at 66.58 per cent in the March quarter against 61.5 in the previous quarter),” he said.
The Chairman further said, it continued to face challenges in the mid and small-sized companies segment.
Earlier, SBI posted its first quarterly net profit drop in two years, missing market estimates after being dragged down by lower interest income and higher provisions for loan losses.
In an economy witnessing demand slowdown, the SMEs are facing heat from the banks for repayment of loans.
Several banks have gone in for recovery of debts through assets sale and going to the extent of publishing photographs of the entrepreneurs who have failed to repay the loans. (KNN)
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