SBI in the limelight

There is some activity seen on the counter of SBI today. The stock opened stronger, going over 2% to Rs.291.25, Its 52-week high stands tall at Rs.351.50.

The stock is up on news that it has sought bids from ARCs and NBFCs for selling 8 NPAs, worth Rs.3948 crore.

One month ago, the bank had stated that it will sell NPAs of Bombay Rayon Fashion and Shivam Dhatu worth Rs.2,490 crore and had invoted bids for the same.

Bombay Rayon Fashion owes the bank Rs.2,260 crore while Shivam Dhatu owes Rs.229.32 crore.

The Bank expects recoveries at around 50% from the RBI’s identified initial 12 large bad loan accounts. The recoveries are expected to be around 50% and most banks are holding provisions in excess of 50%. SBI plans on a 10% credit growth for FY19 and is eyeing on an asset mix of 60% retail and 40% corporate. 

SBI chairman Rajnish Kumar also said that the peak recognition of non-performing assets was reached on March 31, 2018.