SBI taking bold steps to reduce bad loans

State bank of India (SBI), the country's largest lender, is taking bold steps to trim down bad loans or non-performing assets (NPAs), Managing Director & Group Executive (National Banking) A Krishnakumar said.

Mr. Krishnakumar said that all zones of the bank had been asked to tighten the recovery of debts and cut NPAs, which have swelled to 5.73 per cent.

He said the bank has already initiated legal action against entities that have not cleared loans, stressing that even major clients like airlines would not be spared.

Cautioning defaulters, he said, "Even the major clients including the airline operators would not be spared and legal action have been already initiated."

Last month, the country's biggest lender, had unveiled a new roadmap that will put restrictions to slippages and also give early warnings on stressed assets. The state-owned lender is under increasing pressure from the side of government to reduce bad loans.

Mr. Krishnakumar also announced the bank's plans to open 1,000 branches every year across the country till fiscal 2015-16. This year, the bank has so far opened 700 branches, while 300 branches are scheduled to be opened before March 2014. The bank already has 15,550 branches.

SBI shares gained 1.14 per cent to Rs 1549.15 apiece in morning trade on March 03, 2014.

Source :  http://www.topnews.in/sbi-taking-bold-steps-reduce-bad-loans-2390668