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    SBI Launches New Scheme For NPA Settlement

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    State Bank of India (SBI) has launched a new settlement scheme called RBI-One Time Settlement II to accelerate recovery of dues from non-performing accounts. The scheme is more liberal than previous schemes by covering accounts with balances up to Rs 25 lakhs as of March 1998, across all sectors. It will consider only the principal outstanding as of March 1998 and not accumulated interest. SBI claims this new scheme is more generous than RBI and SBI's previous one-time settlement schemes.

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    SBI Launches New Scheme For NPA Settlement

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    elinakanungo834254
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    State Bank of India (SBI) has launched a new settlement scheme called RBI-One Time Settlement II to accelerate recovery of dues from non-performing accounts. The scheme is more liberal than previous schemes by covering accounts with balances up to Rs 25 lakhs as of March 1998, across all sectors. It will consider only the principal outstanding as of March 1998 and not accumulated interest. SBI claims this new scheme is more generous than RBI and SBI's previous one-time settlement schemes.

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    SBI Launches New Scheme for NPA Settlement

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    State Bank of India (SBI) has launched a new settlement scheme called RBI-One Time Settlement II to accelerate recovery of dues from non-performing accounts. The scheme is more liberal than previous schemes by covering accounts with balances up to Rs 25 lakhs as of March 1998, across all sectors. It will consider only the principal outstanding as of March 1998 and not accumulated interest. SBI claims this new scheme is more generous than RBI and SBI's previous one-time settlement schemes.

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    4K views2 pages

    SBI Launches New Scheme For NPA Settlement

    Uploaded by

    elinakanungo834254
    State Bank of India (SBI) has launched a new settlement scheme called RBI-One Time Settlement II to accelerate recovery of dues from non-performing accounts. The scheme is more liberal than previous schemes by covering accounts with balances up to Rs 25 lakhs as of March 1998, across all sectors. It will consider only the principal outstanding as of March 1998 and not accumulated interest. SBI claims this new scheme is more generous than RBI and SBI's previous one-time settlement schemes.

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    SBI launches new scheme for NPA settlement, THE FINANCIAL EXPRESS, 26

    AUGUST 2010

    State Bank of India (SBI) has launched a unique scheme — RBI-One Time Settlement II — to
    accelerate recovery of dues from non-performing accounts.

    According to an SBI press statement issued here on Tuesday, RBI-OTS II, is more liberal than the earlier
    settlement schemes. The new scheme will be applicable to non-performing accounts with outstanding
    balance up to Rs 25,00,000 (principal) as on March 1, 1998. The scheme will cover all sectors and its
    guidelines will be in force till June 30, 2002.

    SBI claims that this instant settlement formula under RBI guidelines is much more liberal than the earlier
    one-time-settlement schemes of RBI and SBI, which covered amounts up to Rs 5 crore and Rs 1 crore,
    respectively.

    Under the present scheme, only principal outstanding as on March 31, 98 will qualify and the interest
    outstandings will not be applicable.

    SBI to raise NPA cover if needed ,


    BUSINESS STANDARD, 26 AUGUST 2010,Press Trust Of India / Mumbai July 21, 2009, 0:24 IST

    The country’s largest lender, State Bank of India (SBI), On Monday said its provisions on bad loans were
    adequate, but the cover might be increased if the need arose.

    The Reserve Bank of India recently asked the lender to increase the provision coverage ratio (PCR) of
    38.72 per cent, which is far below the industry average, to 50 per cent at least.
    “Generally, the PCR is 40 per cent. But the apex bank has been indicating that it should be at least 50 per
    cent,” SBI Chief Financial Officer S Ranjan said. Ranjan attributed the low provisioning to a single large
    account, which had earlier been classified as a non performing asset (NPA).

    “That (low PCR) is because one account, Dabhol, got classified as an NPA last year. It will now be re-
    classified as a standard asset. Automatically, the provision will go up to 43 per cent,” Ranjan said. The
    lender was also seeking options to further hike the provision coverage and will evolve policies to
    execute the plan, he said.

    He asserted that there is no dangerous signal with regard to NPAs in the bank and said it has adequately
    provided for covering of its bad loans.

    Higher NPA provisions hit SBI profits

    State Bank of India missed forecasts with a 4.5 per cent fall in third quarter profits following a sharp rise
    in provisions for bad loans. The bank more than doubled provisions for contingencies and bad loans in
    the quarter to Rs 1,166 crore from Rs 470 crore a year earlier. The net profit declined to Rs 1,065 crore
    for the quarter ended December, down from Rs 1,115 crore a year earlier when it had some tax
    payments refunded to it and made currency gains. The bank said its net interest margin, excluding one-
    off items, improved by 44 basis points to 3.29 per cent for the nine months ended December. ICICI Bank
    had last week reported a 42 per cent rise in net profit. With the SBI results falling below market
    expectations, its shares fell by 4.5 per cent to Rs 1,168.75 on selling pressure.

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