Chairman Dinesh Kumar Khara
He said the bank was well-positioned for growing finance and would explore lending opportunities in promising sectors to diversify the portfolio and create risks.
The country’s largest bank, the State Bank of India (SBI), has adapted to the challenges posed by the COVID-19 epidemic and is prepared to deal with any disruption caused by the epidemic, said its chairman Dinesh Kumar Khara.
He said the bank was well-positioned for growing finance and would explore lending opportunities in promising sectors to diversify the portfolio and create risks.
“The bank is familiar with the challenges posed by the COVID-19 epidemic and is in a better position to deal with any of the next wave,” Khara told the bank’s shareholders at its 66th annual general meeting.
“I sincerely hope that the performance of FY2021 will continue in FY2022,” he said.
For the financial year ended March 31, 2021, the bank reported the highest private interest rate of Rs 20,410 crore with a total profit of Rs 14,488 crore last year.
The total number of NPAs dropped to 4.98 percent in FY21 from 6.15 percent last year. PCR (inclusion rate) also improved to 87.75 percent.
Khara said the business plan for which the funds were disbursed had performed well in the bank, and was reflected in various areas of consolidated financial statements since March 2021.
He said the 2021-22 financial year started with the second unexpected wave of COVID-19 infection.
Although the content strategy at the moment includes avoiding total closure and managing the situation in areas with low load, the impact on the economy will still be felt, he said.
In the current financial year, Khara said the bank would continue to accelerate its digital system. The scope and reach of YONO will be further expanded.
“With the release of pre-existing debt cases to resolve, re-establish courts and the establishment of the National Asset Reconstruction Company (NARCL), efforts will be fully implemented to maintain momentum in this financial year,” Khara informed shareholders.
He said the bank was committed to creating a level of risk awareness at all levels. It also aims to constantly improve controls and safety measures, including cyber security measures, to ensure the mitigation of various risks.
Khara said the lender had been closely monitoring the debt portfolio during the current crisis. The internal control system of the bank is also strengthened, where necessary.
According to the current inflation rate of about 13.74 percent, the bank is well off before.
“We expect about nine percent of debt growth and are well equipped to handle this type of debt growth,” Khara said later in response to shareholders’ questions.
He said at present, the bank had 406 lost revenue branches and had put in place a proper restructuring plan.
“We have been monitoring the implementation of these plans,” he told shareholders.
In the worst cases, in that case, the revenue-generating branch could not be profitable, the bank provided the CSP (customer service center) and the corresponding customer service center and reduced the number of these branches, he said.
During the year, the bank issued $ 34,000 crore for loans, he said.
Khara added that despite the second wave of COVID-19, the country’s economy is expected to recover from FY2022.
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