SBI to revise Q2 slippage numbers down by Rs 1,389 cr
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State Bank of India (SBI) will revise its slippage numbers downwards by Rs 1,389 crore for the quarter ended September 30, an SBI official said.
The gross slippage numbers will now stand at around Rs 7,100 crore compared with the earlier reported figure of Rs 8,500 crore. There will, however, be no changes to the net slippages or gross/net NPA numbers.
SBI's share price rose 1.59 per cent to Rs 2,190.65 on Monday at the BSE.
The SBI official clarified that there were some inter-quarter numbers included in both slippages and upgrades. These were accounts that slipped during the quarter and were upgraded during the same quarter.
The standard practice at banks is that interquarter slippages if recovered in the same quarter are not shown either as slippages or upgrades. Therefore, SBI has now removed it from both slippages and upgrades as per standard practices. As a result the upgrades figures have also been revised from Rs 3,000 crore to around Rs 1,600 crore.
Slippages refer to those loan accounts that have slipped into the non-performing asset (NPA) category from a standard account. The total stressed assets (slippages + restructured loans) on account of this revision stands at Rs 11,800 crore.
The bank restructured assets to the tune of Rs 4,694 crore during the quarter. A Standard Chartered note said that the the Rs 1,389 crore relates to accounts including Bharti Shipyard, Hotel Leela and Bilcare. "Bharti Shipyard and Hotel Leela slipped during Q2 as NPLs but were upgraded in the same quarter upon restructuring. For Bilcare the amount was recovered," the note said.
Some of the accounts that did slip into NPA in the quarter included Nitco Tiles, Max Mobile, Kamat Hotels and Reid and Taylor, S Kumars.
SBI's asset quality deteriorated during the quarter with gross NPAs sequentially rising by 18 basis points to 5.15 per cent and net NPAs up 22 basis points to 2.44 per cent.