State Bank of India (SBI), country’s largest lender is planning to sell around Rs 5000 crore of non-performing assets (NPAs) to asset reconstruction companies (ARCs) before the end of March 2014. Currently, there are 14 ARCs functioning and the bank has invited many of them to pick up its stressed loans of around Rs 5,000 crore.
The move comes ahead of the tighter provisioning norms kicking in from next April, which the central bank had in May last year announced, when it had more than doubled the provisioning for restructured loans to 5% from 2%. Meanwhile, the bank is expecting at least Rs 9,500 crore of loans being restructured in the fourth qaurter.
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.
| Company Name | CMP |
|---|---|
| SBI | 1080.35 |
| PNB | 114.50 |
| Canara Bank | 142.35 |
| Bank Of Baroda | 280.00 |
| Union Bank Of India | 188.90 |
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