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Despite the concern expressed by the Reserve Bank of India (RBI) about the unsecured loan portfolio of banks, the country’s largest bank SBI has said that it is not worried about the NPA in the unsecured loan portfolio. Bank Chairman Dinesh Khara said the loan book of unsecured loans in the bank is better than that of secured loans.

SBI Chairman Dinesh Khara said that so far a total of Rs 3.2 lakh crore unsecured loans have been given by the bank, of which only 0.69 percent has turned NPA. The value of the unsecured loans which have turned NPA is Rs 2,208 crore. Khara said that out of all the unsecured loans, 86 percent are such customers who get monthly salary.

SBI had excellent results in September quarter:

SBI reported a net profit of Rs 14,330 crore in the July-September FY24 quarter, which is 8 percent more than Rs 13,265 crore last year. The results of the country’s largest bank have been better than market expectations. Experts had estimated a net profit of Rs 14,221 crore for SBI. Apart from this, Net Interest Income (NII) during the second quarter stood at Rs 39,500 crore, which is 12.3 percent more as compared to Rs 31,184 crore in the same quarter of the last financial year. At the same time, the gross NPA of the bank was recorded in the same quarter last year. It has come down from 3.52 percent to 2.55 percent. On the other hand, net NPA for this quarter improved from 0.80 percent to 0.64 percent on an annual basis. That means SBI’s results this quarter have been better than ever before.

RBI conerned over unsecured loans:
It is noteworthy that RBI Governor Shaktikanta Das had expressed concern about the recent increase in unsecured credit growth in the Monetary Policy Committee (MPC) meeting in October 2023. He also advised banks and non-banking financial companies (NBFCs) to strengthen their internal surveillance mechanisms. Shaktikanta Das had said that banks and NBFCs are advised to strengthen their internal surveillance mechanisms, if there is any risk, address it and take necessary security measures in their interest.