SBI Chairman Dinesh Kumar Khara stated on May 9 that the bank might adjust infrastructure loans’ pricing if the RBI’s draft regulations on infrastructure project financing are implemented.
During the post-policy press conference, Khara mentioned that any incremental provisions would not be substantial. He expressed confidence in the bank’s ability to absorb such changes and indicated a potential repricing of loans if the proposed regulations become a reality.
On May 3, the RBI proposed higher provisions for under-construction infrastructure projects and emphasized stricter monitoring of emerging stress in the sector.
Khara also revealed that the bank had conducted assessments and would convey its perspectives to the RBI. SBI’s infrastructure project finance portfolio stands at approximately Rs 1.20 lakh crore.
According to the RBI’s proposal, lenders would need to set aside five percent of the loan amount as provision during the construction phase, which would reduce to 2.5 percent once the project becomes operational. The phased implementation includes provisions of two percent in FY25, 3.5 percent in FY26, and five percent by FY27.
In the fourth quarter results, SBI reported a 24 percent increase in net profit to Rs 20,698 crore, supported by robust loan demand. Asset quality also improved, with GNPA at 2.24 percent and net NPA at 0.57 percent.
