Chairman Dinesh Khara states that SBI is not concerned about unsecured loans.

 Chairman Dinesh Khara states that SBI is not concerned about unsecured loans.

As of September 30, 2023, the bank's entire unsecured book was worth Rs 3.2 lakh crore, according to Khara. The bank's gross non-performing asset ratio, he said, is 0.69 percent.

Salary-based clients make up around 86% of our unsecured book, according to Khara.

Chairman Dinesh Khara of the State Bank of India (SBI), the biggest bank in the nation, said that there is no cause for concern about its unsecured book.

"Our unprotected book doesn't worry us. Our unprotected book performs better than our protected one. Approximately 86% of our unsecured book belongs to salaried clients, Khara said at the Q2FY24 quarterly results presentation.

In October 2023, Governor Shaktikanta Das of the Reserve Bank of India (RBI) raised concerns to the Monetary Policy Committee (MPC) about the recent increase in unsecured loan growth and requested that banks and non-banking financial corporations (NBFC) fortify their internal monitoring systems.

"It would be prudent for banks and non-bank financial companies to fortify their internal monitoring systems, tackle any potential risk accumulation, and implement appropriate measures to protect themselves," Das said.

Khara said that the gross unprofitable asset ratio of the bank is 0.69 percent.

Our whole unsecured book is at Rs 3.20 lakh crore to September 30, 2023," Khara said.

On November 4, the bank announced a net profit of Rs 14,330 crore for the July–September fiscal year, an 8 percent increase over the Rs 13,265 crore recorded the previous year. The biggest lender in the nation exceeded market expectations, reporting a net profit for the quarter of Rs 14,221 crore.

The net interest income (NII) for the quarter was reported at Rs 39,500 crore, up 12.3% from Rs 31,184 crore in the same quarter of the previous fiscal year.

Gross non-performing assets (NPA) for the bank decreased to 2.55 percent in the same quarter of previous year from 3.52 percent. Conversely, year over year, net non-performing assets (NPA) decreased to 0.64 percent for the quarter from 0.80 percent.