India's largest public-sector lender State Bank of India has reported a stellar set of numbers for the second quarter.

Net interest income grew by 18 percent, beating street expectations. Net profit at over Rs 3,000 crores was twice what was expected on a yearly basis and it was a three-fold rise. The biggest highlight though was the improvement in asset quality. Ritu Singh spoke with SBI Chairman Rajnish Kumar and asked him about the asset quality scenario.

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Kumar said, "Our baseline trend is all good and exceptions keep on coming. When those exceptions come, people get worried that asset quality is deteriorating. When that exception is not there you feel that in the asset quality there is a great improvement."

On credit growth, he said, "We have a lot of sanctioned limits in place and as the demand picks up or capacity utilisation improves, I am hoping that these limits will be utilised. As far as our retail is concerned, we are doing fairly well."

On SBI Cards and SBI General IPOs, he said, "SBI Cards will be next quarter, they are ready almost. We are hoping that next quarter it will be done. SBI General Insurance, when it reaches a certain level of valuation."