State Bank of India (SBI) said that non-performing asset (NPA) management would show much better results in the next three quarters, and there will be no negative surprises on the bad-asset front.

Pratip Chaudhuri, chairman of India's biggest lender, said the bank is currently reviewing its NPA management and providing advice to borrowers on how to manage their cash better.

SBI's gross NPAs ballooned to around 5% of its total assets, or Rs 47,156 crore, in the first quarter of this fiscal year. But, Mr. Chaudhuri said that concerns over non-performing assets (NPAs) are slightly overplayed.

On the sidelines of FICCI Banking Conclave, he told reporters, "The NPA concerns are slightly overplayed, but the next three quarters NPA management would show much better results."

Mr. Chaudhuri revealed that companies are being encouraged to sell non-core assets, and, in case a company is short of funds, the bank is asking it to get private equity to prop up its equity base.

Those who are rich in assets but poor in cash are being given more loans. The bank's recent reviews revealed that there are many companies that are asset-rich but finding big difficulties in getting cash. Mr. Chaudhuri said he would not take an alarming view for most of these NPAs because a little consideration and stretching of the repayment periods, most of them would become standard assets.