SBI sets up team to track resolution of accounts identified by RBI

MUMBAI: State Bank of India (SBI) has set up a team of experts to deal with the resolution process of at least 32 defaulters and a few of them have already been referred to insolvency courts, according to three people aware of the matter. All these cases have been identified by the Reserve Bank of India (RBI) in its two lists of around 40 defaulters sent to banks.

The move to set up a dedicated team is to ensure quicker decision making, said one of the three people, requesting anonymity. “Right now the NCLT related accounts are being handled by various teams at the bank in a scattered way. Setting up a dedicated team will bring in a sharper focus to track these accounts.”

“With a team of experts specifically looking into NCLT cases, some amount of pressure will ease and these units can focus on new business of better corporates, especially when we are going into the second half of the fiscal, which is usually busy season for credit,” this person said.

Existing stressed assets management group (SAMG) will focus on recoveries through other means such as restructuring under various schemes of RBI as well as selling bad loans to asset reconstruction companies.

SAMG as well as corporate account units will provide inputs on each of these 32 cases as and when required by the monitoring team.