Stressed assets have been one of the biggest challenge to the growth of the Indian banking industry. At SBI, we are cognisant of these challenges, and are committed to improve the asset quality in our books. We have undertaken a multipronged approach to arrest fresh slippages by adopting technologically advanced underwriting practices for asset selection. We believe that our stringent credit underwriting processes will be the key driver of long-term sustainable quality growth and superior shareholder returns. Furthermore, we are strengthening our risk monitoring and assessment techniques, to prevent and avoid potential slippages through an early warning system that has been implemented.

It is incumbent upon us to ensure that our business operations remain fully compliant with laid down procedures and regulatory requirements. Over time, we have evolved a robust risk management model aligned with regulatory standards and international best practices. Our policies and procedures are in place to measure, assess, monitor and manage risks systematically across all our portfolios. We have undertaken initiatives to inculcate a risk and compliance culture across the organisation by imparting extensive training.

We are actively recognising and addressing the legacy credit issues, while striving to ensure that the new origination is well de-risked. Furthermore, a large proportion of our stressed assets are under various resolution processes. These eventual resolutions will further improve our asset quality metrics meaningfully, and also make way for credit expansion and growth.

At SBI, we have been proactive towards making the banking system efficient and credible, which is essentially a prerequisite for stronger economic growth of our country.