State Bank of India (SBI) will purchase good quality assets worth Rs 45,000 crore from NBFCs (non-banking finance companies) which are facing liquidity crisis triggered by a series of debt repayment defaults by financial conglomerate IL&FS and its subsidiaries.
Earlier, the bank had planned for a growth of Rs 15,000 crore through portfolio purchase, which is now enhanced by buying additional assets of up to Rs 30,000 crore. This step will benefit both the bank and the NBFC sector as they get much required liquidity while the bank will get good loan portfolio.
SBI is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
