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State Bank of India is looking to increase its provision coverage ratio (PCR) to 66-67 per cent by early FY’19.
According to Rajnish Kumar, Managing Director, SBI, the exercise for increasing the PCR could either be achieved this fiscal or may spill over to early in the next fiscal.
The bank’s provision coverage ratio, which is measured by the quantum of funds set aside by banks to cover bad loans, was higher at 60.79 per cent as on June 30, 2017, as compared with 59.91 per cent in the same period last year.
Gross non-performing assets of the bank have increased to Rs 1,88,068 crore as of June 2017, against Rs 1,37,662 crore during the same period last year. The percentage of gross NPAs to advances has also increased to 9.97 per cent (7.40 per cent), while the net NPAs have increased to 5.97 per cent (4.36 per cent) as on June 2017.
“Provisioning needs to be done……our PCR may go up to 66-67 per cent either by the end of this fiscal or spill over to early next fiscal,” Kumar told newspersons on the sidelines of a banking colloquium organised by the Confederation of Indian Industry here on Saturday.
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