Source ; PTI :May 16,2010
New Delhi, Stung by a severe fall in its Q4 net profit due to higher provisioning for bad loans, the country's largest lender State Bank has sought more time from the Reserve Bank to meet the new requirement of setting aside funds to the tune of 70 per cent of the bad loans.
The SBI request assumes importance as its profit dropped by a whopping 32 per cent to Rs 1,867 crore in the fourth quarter of 2009-10 even when it raised provisioning only marginally from 56.19 per cent to 59.23 per cent of its total non-performing assets on quarter-on-quarter basis.
SBI's competitor ICICI Bank has already got six months relaxation to meet the new norms beyond the RBI stipulated September 2010.
"The RBI has allowed us time till March 31 next to reach a provisioning coverage ratio of 70 per cent.
The SBI request assumes importance as its profit dropped by a whopping 32 per cent to Rs 1,867 crore in the fourth quarter of 2009-10 even when it raised provisioning only marginally from 56.19 per cent to 59.23 per cent of its total non-performing assets on quarter-on-quarter basis.
SBI's competitor ICICI Bank has already got six months relaxation to meet the new norms beyond the RBI stipulated September 2010.
"The RBI has allowed us time till March 31 next to reach a provisioning coverage ratio of 70 per cent.
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