Dinesh Kumar Khara, Chairman, SBI said that they are placed well as far as growth capital is concerned.
In order to diversify the portfolio and curb risk, the bank is also exploring opportunities for lending in promising sectors said the Chairman while addressing the bank’s shareholders at the 66th annual general meeting held virtually. He added that the bank is well positioned to tackle any subsequent wave of the virus. He said that he is cautiously optimistic that the performance trajectory of FY2021 will continue in FY2022 as well.
Bank Well Positioned For Next Waves, If They May
With minimal disruption for the customers, the banks were able to function well despite COVID-19 pandemic, despite the year being an exceptionally challenging year.
The Bank has converted a challenging situation into an opportunity by achieving a high level of digitisation with share of Alternate Channels in total transactions increasing to 93 per cent in FY2021.
Highest-ever standalone net profit of Rs 20,410 crore was reported by the bank for the financial year ended March 31, 2021. The figure was Rs 14,488 crore in the previous year.
From 6.15 per cent in the last year, the gross NPAs ratio declined to 4.98 per cent in FY21. There is an improvement in the PCR (provisioning coverage ratio), 87.75 per cent.
The business continuity plans have worked well and same is reflected in various parameters of the consolidated financial statements as of March 2021.
He said that the second wave of COVID-19 infections also came out of the blue and despite the new containment strategy of avoiding complete lockdown, the impact on the economy shall still be felt.
The digital agenda, is something that Khara said the bank will pursue and seek to accelerate. The scope and the reach of YONO will be expanded further.
“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.
Plans To Revive The Loss Making Branches
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.
An appropriate action plan to revive 406 loss-making branches has been chalked out by the Bank.
He added that Rs 34,000 crore of loans were written off by the Bank in the financial year.
He also said that the economy, despite the second wave of COVID-19, is poised for a recovery in FY2022.
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