What is your opinion on the numbers? What about asset quality? We see improvement; do you see this continuing in the future?
I think there is a good improvement ahead in asset quality. Now the absolute number has gone down and the net NPA sits at around 1.02 from 1.34. The same thing happened with a gross NPA below 4%. The best thing we’ve seen is double-digit loan growth. At 11%, this is a good surprise, as it is above the industry trend.
However, the growth in lending has hardly translated into net interest income as around Rs 400-500 crore is missing from Rs 31,198 crore.
How do we also review the SBI provisions? They see a slight reduction, but what about that?
I think it’s probably because of the aging of some of the loans. Also in the last quarter the loan loss provision was higher and this time around I suspect the same must have happened as the slippages were handled pretty well by the bank and the NPA numbers also decrease.