SBI to hold loan defaulter's week May-end

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The country's largest commercial bank, State Bank of India (SBI) said on Friday that it will be holding a resolution week from may 25 for its genuine loan defaulters where they can arrive at an amicable solution with the bank.

"In the last week of May, we are going to have a one week of resolution - this is not for willful defaulters but people who are genuinely in trouble (in repaying loans) can come to us for discussions," bank chairperson Arundhati Bhattacharya told media persons here while announcing the bank's annual financial results.

She said control rooms will be set up across India for the loan defaulters to come and discuss their loan repayment issues with the bank.

"However, if people (defaulters) don't come, June 12 is our auction date and we will go ahead and auction stuff," she said.

The bank has christened this programme as Rin Samadhan Week and it will run from May 25 to May 31.

"We are targeting to run such programmes before the closure of each fiscal quarter," said Bhattacharya, adding SBI has noticed major improvements in resolution of stressed loans.

Asked about the sectors which remain a concern for the bank regarding loan advances, she said the construction segment, power and iron and steel sectors are stressed sectors for the bank.

The bank has projected a growth in its loans by 13-14 percent this fiscal year.

In 2014-15, the bank saw a credit growth of 11.97 percent in large corporates, a growth of 15.13 percent in the auto loans sector while direct agro loans and loans to small companies rose marginally by less than one percent.

Its credit growth in mid-sized companies fell by 0.28 percent during 2014-15.