State Bank Of India

SBI has breached RBI’s credit exposure norms during three consecutive years with regard to its loans provided to RIL. SBI, which also has significant exposures to troubled Air India besides certain telecom firms being probed in relation to the 2G scam, has now disclosed that its credit to RIL was in excess of the limits prescribed under the central bank’s prudential credit norms.

Detailing the cases where it breached prudential limits for single borrower exposure during FY11, SBI has named RIL as also public sector majors Indian Oil and Bhel as three such borrowers in its annual report. This is the third straight year when SBI has exceeded the single-borrower ceiling with regard to RIL, as per the bank’s annual reports for the past three financial years. However, the bank brought down its exposure to RIL within the limit on the last date of the previous fiscal.