SBI to adopt aggressive approach in dealing with defaulting firms

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SBI to adopt fast approach in dealing with defaulting firms
India's largest lender State Bank of India (SBI) has decided to aggressively reduce its NPAs as they continue to mount, posing risks to its asset quality and credit rating.

Media report said that SBI has decided that it will expedite the process of filing winding-up petitions against promoters of defaulting companies, with an aim to bring in change in repayment attitude among companies.

Reports said that SBI believes that it was slow in filing and following up on winding-up cases. As of March 31, 2013, SBI's Gross NPAs stood at 4.75 per cent, while net NPAs stood at 2.1 per cent. In line with the slowing economic growth, SBI's portfolio of restructured loans has also shot up sharply.

Also as of March end, SBI's provisioning for NPAs stood at Rs 11,368 crore, while its provision coverage ratio stood at 66.58 per cent.

Read more about: state bank of india
Story first published: Wednesday, June 26, 2013, 9:21 [IST]
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