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. 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 approximately 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. The bank is yet to take a view on extending the special concessional loan package for SMEs, which ends on September 30.
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