He also mentioned that SBI has around Rs 1 lakh crore for taking care of all possible elevated slippages.

Despite the economic stress triggered by the lockdown, only 21.8% State Bank of India’s (SBI’s) customers have availed of the moratorium. In a post-earnings call with media, SBI chairman Rajnish Kumar said that 82% customers had paid two or more instalments during lockdown. He also mentioned that SBI has around Rs 1 lakh crore for taking care of all possible elevated slippages and the bank did not intend to go to market for raising capital. Edited excerpts:

What is the value of moratorium you have provided to customers? What is your perspective after extension of moratorium by three months by RBI? Have you done any contingency provisioning?

We extended the moratorium to everyone, despite that, 82% customers have paid two or more instalments. Around 92% people have paid one or more instalments. In the corporate book, only 13% people have not paid any instalments. The repayments which are happening, shows quality of our book. On the question of how many more people will opt for moratorium after extension, we are yet to know because it has just started. But my sense is that numbers will not be significantly different from first three months, or rather it may improve as we exit the lockdown. We have not made any contingency provision, as our provision coverage ratio (PCR) is already high. We have provided at 15% for Rs 6,250 crore worth accounts which were standard as on February 29,2020, but would have become non-performing assets (NPA) on March 31, 2020. This is a floating provision, not account specific provision. It is not included in PCR.

How many non-banking financial companies (NBFCs) have availed moratorium? Are you continuing to provide moratorium to NBFCs on a case to case basis only?

Only 16 NBFC accounts out of 117 in total, have availed moratorium from our bank. We are examining cash budget of NBFCs and providing moratorium.. There are still three months to go for providing moratorium.

How do you see slippages on your books? Do you want to raise more funds?

In financial year 2021, even in bad scenario, we are not going to have slippages of more than 2%. Although, we have to wait for at least one quarter more for better assessment. We do not intend to go to government or to market for raising capital. That is again, my assessment as of now. In 8 quarters pre provision operating profit would be Rs 1.4 lakh crore. Our net NPA today is Rs 51,000 crore. We will need Rs 40,000 crore for legacy… and we have Rs 1 lakh crore for taking care of all possible elevated slippages, plus we have substantial unlocking value in our subsidiaries. As of now, we do not foresee any need that bank will be going to the market for raising capital. Although we have made enabling provision for raising Rs 20,000 crore.

How do you see your loan growth this year?

We are taking eight quarter view. We had budgeted for 12% growth in loan, but that seems unlikely in the current scenario… It should be somewhere between 5% to 12%… So, mid point will be 7-8%. Therefore it should grow by 7-8 %.

SBI’s one year MCLR stands at 7.25% and savings rate at 2.7%. Is there any floor for deposit rates and what should depositors prepare themselves for?

I think the rates should stablise at these levels. But if further rate cut happens, we have no choice but to cut the rates.

Your net interest margins (NIMs) have contacted 8 basis points (bps) year-on-year (yoy), and 65 bps quarter-on-quarter (q-o-q) to 2.94%. What has been the reason?

It has been due to interest reversal on agriculture accounts. During the last quarter, there has been slippages of Rs 5,238 crore in agriculture NPAs. So, correspondingly there has been interest reversal on that front.