Asset Restructuring Companies

With sales of loans to asset restructuring companies (ARC) and 5/25 rules, the bank has distinguished itself from others, says Hemindra Hazari of hemindrahazari.com.

ARC sales one of the options to recover loans: SBI

Rajnish Kumar, MD of SBI, says the 5:25 scheme can also help reduce stress on banks. The 5:25 scheme allows banks to extend loans for a longer period of time for infrastructure projects, typically 20-25 years, in a bid to match cash flow of these projects. It can refinance them every 5 or 7 years.

SBI puts NPAs worth Rs 4,400 cr on block: Sources

India's largest lender State Bank of India has put non-performing assets (NPAs) worth Rs 4400 crore on the block, say sources. It is looking to sell 66 bad loan accounts to asset restructuring companies (ARCs).

PSBs need to track credit better to check NPLs: Ex-SBI CFO

Diwakar Gupta, former MD & CFO of SBI, said the primary reason behind the poor show on the NPL front is the fact that not much has changed on the ground for PSU banks. Public sector banks need to track credit better to control gross NPLs, he added.