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Home Best Practices India Recovery Camps by SBI to settle bad debts

Recovery Camps by SBI to settle bad debts

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PATNA: In an effort to get rid of bad loans, State Bank of India ( SBI) is planning to hold special adalats in Bihar and Jharkhand on June 25 to settle loan accounts pertaining to small and medium enterprise (SMEs) through its one-time settlement (OTS) scheme.
 
Under the scheme, the persons concerned would have to pay upfront 5% of the loan taken for settlement of the total dues within a year, while they would get 15% discount on the loan if they decide to make one-time settlement before July 31, said Stressed Assets Recovery Branch (SARB) AGM Sunil Sharan Sinha.
 
This is not the first time SBI is holding such camps. It is now a nationwide campaign of SBI to recover and settle loan accounts of various kinds. Initially, the bank recovered about Rs 5 lakh on the spot from the defaulters against non-performing assets at Kankerbagh adalat alone held on February 11.
 
Besides the process involving discussions at the houses of persons who have not repaid their loans has also been going on. Given its informal nature, the special programme has been given the name Bank Adalat Aaapke Ghar (BAAG).
 
It is learnt that the total NPA amount pertaining to housing loans, car loans, personal loans and SME loans in Patna from Danapur to Patna City area is to the tune of Rs 42 crore, including around Rs 20 crore with regard to the SME loans.
 
The SBI has coupled its BAAG campaign with hard measures, like auction of property or seizure of cars, in case of persons who have continued to be either indifferent to its bid to recover the dues or settle the bad accounts, it is learnt. There are 200 cases of car loans in this category. SBI has already announced to auction property in case of four persons, while the cases of six others are being processed to be announced next week.

 

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