While the recent Reserve Bank of India (RBI) circular on increased provisioning for cases sent to the bankruptcy courts will impact State Bank of India (SBI), the country’s largest lender will be able to manage it “without much difficulty”, SBI chairman Arundhati Bhattacharya said on Tuesday, 27th June 2017.
Speaking to shareholders at the bank’s annual general meeting (AGM) in Mumbai, she said the bank is doing everything that is possible to tackle the bad loans problem. She added that in line with the ordinance on non-performing assets (NPAs), the RBI has asked banks to take 12 such accounts to the bankruptcy court.
“Many a times we are making a little more than what the regulatory demand is because we know that more of these provisions will be required,” Bhattacharya said.
Bhattacharya told reporters that the 15 days’ time provided by the central bank to send the accounts to NCLT was over on Tuesday and the three accounts that were supposed to be referred within 15 days have been referred.
“In respect of the other three accounts for which we have time till, I think up to the 15th of the month, we will take them by that time, maybe a little earlier as well,” she explained. According to her, over and above the 12 cases mandated by RBI, there would be another four cases that have already been sent to NCLT.