<p>"SBI's asset quality remains an area of concern especially in view of the slippages seen in FY10 (non-performing loans +24% y-o-y) and further in the first half of the current fiscal (+34% yoy)," the rating agency said in a statement.<br /><br />Non-performing loans are those which are not earning income.<br /><br />Fitch further said that given the management's strong focus on the above segments for better yields and under expectations of better economic growth, the bank's asset quality would be a key earnings driver through the medium-to long-term.<br /><br />However, Fitch has retained highest long-term rating of SBI at AAA with stable outlook.<br /><br />"SBI's long-term ratings reflect its incomparably strong pan-India franchise with over 13,000 branches and 17,000 ATMs, and are further underpinned by its strong credit fundamentals," it said.<br /><br />It further said that the extensive branch presence provides the bank a unique competitive position - largest lender in India with close to one-fifth share each in both system advances and deposits.<br /><br />Fitch further said that SBI's capitalisation levels continue to be above average, while its major share in central and state governments' banking business helps in a better-diversified earnings profile.</p>
<p>"SBI's asset quality remains an area of concern especially in view of the slippages seen in FY10 (non-performing loans +24% y-o-y) and further in the first half of the current fiscal (+34% yoy)," the rating agency said in a statement.<br /><br />Non-performing loans are those which are not earning income.<br /><br />Fitch further said that given the management's strong focus on the above segments for better yields and under expectations of better economic growth, the bank's asset quality would be a key earnings driver through the medium-to long-term.<br /><br />However, Fitch has retained highest long-term rating of SBI at AAA with stable outlook.<br /><br />"SBI's long-term ratings reflect its incomparably strong pan-India franchise with over 13,000 branches and 17,000 ATMs, and are further underpinned by its strong credit fundamentals," it said.<br /><br />It further said that the extensive branch presence provides the bank a unique competitive position - largest lender in India with close to one-fifth share each in both system advances and deposits.<br /><br />Fitch further said that SBI's capitalisation levels continue to be above average, while its major share in central and state governments' banking business helps in a better-diversified earnings profile.</p>