Source :Business Line Bureau:Mumbai, Sept. 8,2010
State Bank of India (SBI) is looking to recover about Rs 300 crore of non-performing assets (NPAs) in the small and medium enterprises (SMEs) segment through the one time settlement scheme, said Mr M. K. Nag, Chief General Manager, SME Business Unit, SBI.
SBI's total exposure to the SME sector is about Rs 1 lakh crore and of this, NPAs account for less than Rs 5,000 crore, or a little more than four per cent.
Though the bank had restructured a significant amount of SME loans last year, this year it has not undertaken any restructuring in this segment. About 10-15 per cent of the restructured loans have become NPAs, Mr Nag said.
The bank is yet to take a view on extending the special concessional loan package for SMEs, which ends on September 30.
“We may tweak the scheme,” Mr Nag said.
Under the package, called ‘SME Help', existing customers could avail of term loans for a period of two years at eight per cent interest.
The bank had also reduced the interest rate on working capital and term loans for all new SME customers with loan requirements up to Rs 5 lakh to 8 per cent, provided they were covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises' guarantee.
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