Ordinance to help NPA management resolutions for banks

The bad loans ordinance is expected to help bankers to adopt resolutions for large accounts, State Bank of India Chief General Manager (Bengal Circle) P P Sengupta said today while welcoming it.
"In most of the large accounts it is a difficult task for bankers to take a resolution. Now with the ordinance Reserve Bank of India is expected to ease that problem," he said here on the sidelines of a BNCCI-organised interactive session.
Bankers were waiting for the details and then a clearer picture would emerge, he said.
Meanwhile, SBI Bengal circle is planning to close down 24 bank branches post the merger of associated banks.

"In the Bengal circle, we have added 52 bank branches from seven associated banks and Bhartiya Mahila Bank. It has been decided that 24 bank branches would be rationalised by September," Sengupta said.
He said the rationalisation would be in a mix of both SBI and merged branches depending upon location and suitability for customers there.

SBI has 1300 bank branches in the circle.
Sengupta said with the merger of the associated and Mahila Bank it's deposit has gone up by Rs 12,000 crore and credit by Rs 11,000 crore.
Speaking about the minimum amount in savings bank, Sengupta said SBI has advised customers who are unable or unwilling to fulfill the new norms should convert their accounts to basic saving bank account.

"Eighty per cent of the acccount holders are already out of this purview of minimum amount directive due to various schemes. While another 15 per cent people have fulfilled the new norms, we find only about five per cent of customers are not meeting them. We are advising them to migrate to basic savings bank account," Sengupta said.