Business Standard

SBI may merge NPA- ridden factoring arm

Related News

is likely to merge its factoring arm, SBI Global Factors Ltd, a company which posted loss of Rs 125 crore in 2010-11, due to higher provisioning on the back of mounting non-performing asset.

Parliament in December passed the Factoring Regulation Bill, 2011, which aims to address problems faced by small and medium enterprises. The Bill also allows banks to undertake factoring activity, so the incentive to run a separate company by a bank is absent.

“SBI Global Factors has turned around in this quarter and we are now deciding the future course of action for the company. Either we will rope in a strategic partner or merge it with the bank,” said Pratip Chaudhury, chairman.

SBI holds 85.39 per cent stake in SBI Global Factors. The remaining 14.61 per cent is held by Sidbi, Bank of Maharashtra and Union Bank of India.

Read more on:   
|
|
|
|

SBI may merge NPA- ridden factoring arm

State Bank of India is likely to merge its factoring arm, SBI Global Factors Ltd, a company which posted loss of Rs 125 crore in 2010-11, due to higher provisioning on the back of mounting non-performing asset.

State Bank of India is likely to merge its factoring arm, SBI Global Factors Ltd, a company which posted loss of Rs 125 crore in 2010-11, due to higher provisioning on the back of mounting non-performing asset.

Parliament in December passed the Factoring Regulation Bill, 2011, which aims to address problems faced by small and medium enterprises. The Bill also allows banks to undertake factoring activity, so the incentive to run a separate company by a bank is absent.

“SBI Global Factors has turned around in this quarter and we are now deciding the future course of action for the company. Either we will rope in a strategic partner or merge it with the bank,” said Pratip Chaudhury, chairman.

SBI holds 85.39 per cent stake in SBI Global Factors. The remaining 14.61 per cent is held by Sidbi, Bank of Maharashtra and Union Bank of India.

image

Read More

Responsible and pragmatic: Amitabh Chaudhry

There has been a high level of focus on financial and capital markets with a slew of measures

Recommended for you

Advertisements

Quick Links

More news from Finance Rss icon

SBI to make room for foreign partner

To cut stake in general insurance venture to 51% from 76%

UBI won't lend aggressively despite removal of lending restriction: CEO

The bank will continue to focus on lending to retail and SME sectors

Digitised policies to soon be mandated for high premium policies

Insurance repositories will be involved in the process of maintaining these policies in a digital format

Back to Top