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State Bank of India expects about 3 per cent of its total restructured loan portfolio of Rs 36,904 crore to slip into the loss category.
What this means is that the bank will have to make 100 per cent provisioning for loans aggregating about Rs 1,100 crore. Recovery of loans in the loss category takes a long time as this entails liquidating the collateral.
India’s largest bank restructured accounts worth Rs 564 crore in the April-June quarter. It also sees loans aggregating about Rs 3,000 crore coming up for restructuring in the current quarter. This includes backlog from the first quarter and cases referred by the bank to the corporate debt restructuring (CDR) cell.
For the quarter ended June 30, 2012, the bank’s gross NPA and net NPA sequentially increased by about Rs 7,500 crore and Rs 4,500 cro
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