State Bank of India looks to offload retail, SME NPAs via portfolio sale

The realisation expected for non-NARCL sales is 35-40 per cent, a senior SBI executive said.

State Bank of India (SBI), the country’s largest lender, is changing its strategy to recover bad loans up to Rs 500 crore.

This financial year, it will look at doing “pool” sales of mid-size units, small and medium enterprises (SMEs), and retail bad loans.

To date it has been engaging in account-by-account sales.

There are two strands in selling bad loans. One is big-ticket accounts, which will move to newly formed National Asset Reconstruction Company Ltd (NARCL), and the second is the non-NARCL portfolio, where the bank intends to sell loans totalling Rs 3,500-4,000 crore.

The realisation expected for non-NARCL