The largest lender of the country, State Bank of India has got extension of one year till September 2011 so as to increase its provision coverage ratio (PCR) to 70% of its total non performing assets (NPAs).
The Chief Financial Officer and Deputy Managing Director S S Ranjan said that the current PCR of the bank was 60%. He said that the bank expects to meet the target before the deadline.
In December 2009, it was mandated by RBI on all banks that they should maintain a PCR of atleast 70% by September 2010.
The loan loss provision of SBI almost doubled to Rs 5,148 crore in the year to March 2010, compared with Rs 2,475 crore a year earlier.
The largest private sector lender, ICICI Bank has received an extension of six months in the same regard. March 2010 saw its PCR at 59.5%. Its gross NPAs rose to Rs 19,535 crore at the end of March from Rs 15,714 crore a year earlier.