State Bank of India has seen limited signs of pandemic-related stress building up on its books, said Dinesh Kumar Khara, who took over as chairman on Wednesday. Early indicators show that one-time restructuring requests are within expected levels, he said.
“When we look at the hits on our restructuring portal, it is an indication of the stress on our book. The indications are that stress is not very high,” Khara told reporters at a press conference. While some corporate customers have approached the bank for restructuring their outstanding dues, the number is not alarming, he said.
On Sept. 21, India’s largest lender released the details of its restructuring scheme for retail and small business borrowers affected by the Covid-19 pandemic. To facilitate easier applications, the bank has created a special restructuring portal where its customers can check eligibility. Borrowers who have income impacted due to the Covid crisis can apply the restructuring.
While the Reserve Bank of India has allowed lenders to keep these restructured assets as standard, they will need to disclose the amount of restructuring done and increase provisions against such assets.