In the middle of growing fears of defaults by non-banking finance companies, country’s largest lender State Bank of India on Friday said it will continue to fund the sector as it feels the problems facing the industry are not very grave and system-wide.
“SBI is lending to NBFCs and we will continue to do so… Our decision is based on the risk perception that we have on a particular entity. We have not stopped lending to NBFCs at all,” managing director Arijit Basu told reporters on the sidelined of a banking summit organized by industry lobby IMC.
SBI had said it had been closely monitoring its exposures to NBFCs for the past many months and was taking appropriate measures to safeguard its interest.
“The overall quality of the NBFC asset portfolio in our books continues to be good. We have already included the stressed NBFC accounts in our estimate for slippages and loan loss provisions for the current financial year,” SBI had said without quantifying it.