SBI chief Arundhati Bhattacharya recently said that the stressed assets level in the banking sector shall come down once the vital industrial sectors begin to function at their optimum capacity. During a media interaction, the SBI chairperson said that most industrial units were working at 60-65 per cent of their capacity against the desired 80-85 per cent.
Bhattacharya said that NPAs will begin to come down as the demand comes back in the economy and we witness more and more capacity utilization, which still is sub-optimal. Be it manufacturing units, be it power plants, most of them were running at around 60-65 per cent of their capacity, she added. The chief when asked about Non Performing Assets or NPAs aid that when it comes up to 80-85 per cent capacity, we would definitely see NPAs coming down.
She was in Gandhinagar to attend the foundation stone laying ceremony of SBI's LHO - Local Head Office at GIFT City - Gujarat International Finance Tec-City. The 14-storey tower shall come up at an investment of Rs.100 cr. Upon completion, the current LHO in Ahmedabad shall be shifted to Gandhinagar.
Meanwhile, SBI share price was trading 0.29 per cent higher at Rs.255.20 from a previous closing of Rs.254.45.
During her visit at the GIFT City, Bhattacharya also inaugurated SBI's IFSC Banking Unit (IBU) at International Financial Services Centre in the GIFT Special Economic Zone.
Commenting on the latest announcement about the SBI merger with its associates, Bhattacharya said that the merger was essential in the wake of tough competition from the Non Banking Financial Companies (NBFCs).
She said that the merger was important because present day banking was evolving at a very fast rate. She concluded that in order to sustain profitable growth, it was important for SBI to consolidate, as small organizations don’t have such strength or capital.For more information, please pay a visit to SBI share price history page.
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