Sberbank to clear bad loan provision within 3-4 yearsJun 26th, 2009 | By Caroline Clayfield | Category: Rouble News
State-controlled Russian lender, Sperbank, has announced that it expects to clear most of its current bad loan provision within four years.
It plans to do this in part, by selling off collateral, according to a statement to shareholders made by CEO German Gref.
The bank has revealed deposit inflows total 58 billion roubles ($1.86 billion) in June, which means the total inflow for the year so far totals 195 billion roubles.
The bank has had to make provision for 7% of its loans to become bad debts, while 3% have already become bad debts. Gref added that the chances of the country suffering a second wave of finacial crisis were “negligible.”
He said that there was cause for caution however, adding that the volume of bad debt was unpredictable, “the volume of non-performing loans (NPL) as of June 15 was about 3 percent. Provisions rose above the 7 percent mark…The rate of NPL growth is slowing. But we can’t say for now whether it is a trend or whether there will be a spike.”