Merger of six banks with SBI is also likely to have its impact on the results. State Bank of India chairperson Arundhati Bhattacharya on Saturday said the bank will make higher provisioning for the telecom sector, since it was undergoing stress. The decision comes in the wake of RBI ordering banks to make higher provisioning for the standard assets of the telecom sector and keep a close watch on it. The telecom industry has an outstanding debt of around Rs 4 lakh crore, incurred mainly on account of payments for spectrum, spectrum usage charges and other levies. The higher provisioning would impact the banks’ September quarter performance.

Source: Indian Express September 23, 2017 20:28 UTC