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SBI sells NPAs worth Rs 4,000 crore in FY14

07 Apr 2014 Evaluate

State Bank of India (SBI) has sold non-performing assets (NPAs) worth Rs 4,000 crore in 2013-14 to asset reconstruction companies (ARCs). The ARCs largely pay in the form of Government security receipts (SR).

This helps a bank to take the equivalent NPA figure out of its books and make an yearly provision for recovery or actual cash payment.

The bank’s Gross non-performing assets (NPAs) as a percentage of gross advances increased to 5.73 percent in Q3FY14 as against 5.64 percent in Q2FY14 and 5.3 percent in Q3FY13 while net NPAs rose to 3.24 percent from 2.91 percent and 2.59 percent during the same period.

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