Mar 18, 2014

In a first, SBI to sell around Rs 5000-cr NPAs to ARCs shortly




For the first time in its over two centuries of history, the nation's largest lender State Bank of India, which had reported 5.73 pc of its assets as bad loans in the December quarter, is going all out to stem the rot by offloading around Rs 5,000 cr of its Rs 67,799 cr dud assets to ARCs before the end of the month.

The move comes ahead of the tighter provisioning norms kicking in from next April, which the central bank had in May last year announced when it had more than doubled the provisioning for restructured loans to 5 from 2 percent.

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