NPA situation of SBI now and further

State Bank of India (SBI) has declared its Q2FY17 results on Thursday. On asset quality front, SBI’s stressed assets have worsened further in Q2FY17. The bank’s standalone gross npa stands at 7.14 per cent amounting to Rs 105783 crore in Q2FY17 against 6.94 per cent amounting to Rs 101541 crore in Q1FY17. Its net npa stands at 4.19 per cent to Rs 60014 crore in Q2FY17 while 4.05 per cent to Rs 57421 crore in Q1FY17.

SBI’s gross NPA stands at 4.15 per cent to Rs 56834 crore in Q2FY16. The net npa stands at 2.14 per cent amounting to Rs 28592 crore in Q2FY16. Its capital adequacy ratio is 13.94 per cent.  Meanwhile, owing to currency ban SBI has received Rs 53000 crore deposits within two days so far as per bank’s management.

Though the NPA situation may be under control, India's largest lender needs to keep a close watch on micro small and medium enterprises (MSME). Due to the recent ban on Rs 500 and Rs 1000 currency notes to curb counterfeiting and crack down on black money, MSME’s business may get hurt in near term.

The share price of SBI declined by 3.87 per cent on bourses after declaration of results; and is trading at Rs 276.25 on an intraday basis.