SBI reveals direct corona-hit stress in its loan portfolio

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SBI listed out main sectors where COVID-19 has directly affected businesses - aviation, commercial real estate, tourism, hotel and resorts, private sector NBFCs, and power. State Bank of India (SBI), has segregated the direct corona-hit stress in its loan portfolio at Rs 93,483 crore in FY20.

Story: Shivani Sharma

Design: Pragati Srivastava

The biggest sector is the NBFC sector with more than 30 per cent share at Rs 29,530 crore. These are private sector NBFCs.

The next largest head is power at Rs 27,554 crore. The Power Sector in India is no stranger to crisis. It has suffered from payment delays, particularly by the State owned distribution companies (Discoms), bankruptcy of large generation capacities.

This persistent outbreak's most notable victim is the commercial real estate sector, which has not only suffocated cash flow impacting the ability of businesses to pay rents, but also severely hindered the supply for construction and repairs across the country.

Tourism had a direct connect with COVID-19 which spread most in the countries with a high number of tourists. The Rs 26,665-crore exposure to commercial real estate, says SBI, is directly hit by the COVID-19 disruptions.

The pandemic and subsequent lockdown have significantly impacted economic activities, with aviation and tourism among the worst affected segments. Bank's aviation sector exposure is small at Rs 466 crore.