Sale of Rs.5000 Crore NPAs to ARCs Soon- SBI Report
Posted on: 18/Mar/2014 5:09:08 PM
This is the very first time during the December quarter, State Bank of India reports about 5.73 % of its chattels as bad loans. Hence SBI main authorities have decided to curtail it by devolving Rs.5000 Crore assets to ARCs earlier this month end.
This move has happened because of firm provisioning rules hits in from April. We have incited about 14 ARCs to get hang of our hassled loans of around Rs.5000 Crores, stated by the SBI official on Monday.
Generally ARCs forfeits about 5-10 percent of the overall bad loans being acquired pay in cash and balance may be security receipts (SRs), cited by the SBI officials.
The bank has toted up Rs 11,400 Crore in new slippages, counting Rs 9,500 Crore from SMEs and Mid-Corporates as well as appended Rs 6,165 Crore into the rationalized loan book all through the quarter.
A crackdown of the balance sheet concluded in trashing of around Rs 5,000 Crore in third quarter. The bank is also anticipating at least Rs 9,500 Crore of loans being simplified in the fourth quarter.
Media news said banks, typically the state-owned ones, are bustling to sell nearly Rs 43,000 Crore to ARCs by this month.
