SBI sold NPAs worth Rs 3,590 cr to ARCs during 2013-14
"The writeoff is notional as SBI is holding security receipts in their investment portfolios, which are redeemable over a period of time," Minister of State for Finance Nirmala Sitharaman said.
- Jul 15, 2014,
- Updated Jul 15, 2014 5:38 PM IST
State Bank of India (SBI) has sold non-performing assets (NPAs) worth Rs 3,590 crore to various asset reconstruction companies (ARCs) during 2013-14, the Rajya Sabha was informed on Tuesday.
Replying to the question whether SBI has sold NPAs worth Rs 3,590 crore to asset reconstruction companies, Minister of State for Finance Nirmala Sitharaman said, "The write-offs involved in such sales amounted to Rs 1,892 crore as a part of total write-offs of Rs 12,882.50 crore during 2013-14".
The writeoff is notional as SBI is holding security receipts in their investment portfolios, which are redeemable over a period of time, she said.
The reasons for preferring sale option are to take care of old and hard core NPAs, where recovery is not commensurate with the efforts; borrowers are not coming forward for settlement despite persuasion and delaying the recovery process by filing frivolous appeals, she added.
The bank has set up a separate dedicated and specialised Stressed Asset Management Group headed by a Deputy Managing Director to resolve high value NPAs which are transferred to this Group, she added.
She also said that there is no manpower crunch in the public sector banks.
In another response, she said, "no specific request from state government of West Bengal has been received to write off or waive the interest on central loans for a certain period."
As per the latest Union Finance Account for 2012-13, the total outstanding central loans and interest of West Bengal as on March 31, 2013 is Rs 12,894 crore and Rs 1,301 crore respectively, she said.
Debt relief measures are extended as per recommendations of Finance Commissions, she added.
State Bank of India (SBI) has sold non-performing assets (NPAs) worth Rs 3,590 crore to various asset reconstruction companies (ARCs) during 2013-14, the Rajya Sabha was informed on Tuesday.
Replying to the question whether SBI has sold NPAs worth Rs 3,590 crore to asset reconstruction companies, Minister of State for Finance Nirmala Sitharaman said, "The write-offs involved in such sales amounted to Rs 1,892 crore as a part of total write-offs of Rs 12,882.50 crore during 2013-14".
The writeoff is notional as SBI is holding security receipts in their investment portfolios, which are redeemable over a period of time, she said.
The reasons for preferring sale option are to take care of old and hard core NPAs, where recovery is not commensurate with the efforts; borrowers are not coming forward for settlement despite persuasion and delaying the recovery process by filing frivolous appeals, she added.
The bank has set up a separate dedicated and specialised Stressed Asset Management Group headed by a Deputy Managing Director to resolve high value NPAs which are transferred to this Group, she added.
She also said that there is no manpower crunch in the public sector banks.
In another response, she said, "no specific request from state government of West Bengal has been received to write off or waive the interest on central loans for a certain period."
As per the latest Union Finance Account for 2012-13, the total outstanding central loans and interest of West Bengal as on March 31, 2013 is Rs 12,894 crore and Rs 1,301 crore respectively, she said.
Debt relief measures are extended as per recommendations of Finance Commissions, she added.