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Stressed assets likely to come down: SBI

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Kolkata: Country’s biggest lender State Bank of India (SBI) on Friday said stressed assets in the system are likely to see a decline due to reforms in power distribution companies and pick up in rural power demand.

“With reforms initiated in the power distribution companies and pick up in the rural power demand, stressed assets in the system are likely to come down”, MD (compliance and risk) of SBI Rajnish Kumar told reporters on the sidelines of a CII event here.

SBI also expects that asset quality in terms of slippages and recoveries in the current quarter ending September 30 to be better than last quarter, he said.

Asked about the possibility of a rate cut by the Reserve Bank, he said it is expected to reduce the policy rate in the upcoming monetary policy review on September 29.

“I believe that RBI would reduce rate in the upcoming monetary policy. The market expectation is of a 25 basis points cut”, he said.

PTI