SBI focuses on MSME and retail loan recoveries
New Delhi, 23 Nov (KNN) SBI, India’s multinational public sector bank is gradually shifting its focus from big stressed accounts to recoveries of small businesses.
The bank is redeploying bankers in Stressed Asset Resolution Group (SARG), and has cut down the number of people working at the unit from 20,000 to 1,600 a few quarters ago, as published in Business Standard.
Swaminathan J, Managing Director, Risk Compliance and SARG, SBI said, “It is not the intention of the bank to scale down it further as going forward as recoveries have to come from various mid-size and small accounts.”
He explained that big-ticket stressed accounts that needed complex capabilities are more or less resolved.
Hence, the bank has decided to work a little more with small mid-sized entities in the up to INR 250 crore category.
Their recoveries are also going to be INR 5 crore to INR 200 crore per account, said the executive.