SBI to restructure SME loans

The country's largest public sector bank, State Bank of India (SBI), will restructure small and medium enterprises (SME) loans in the Bengal circle, which comprises West Bengal, Sikkim and Andaman & Nicobar Islands.

This follows Reserve Bank of India (RBIs) guidelines for restructuring SME loans to public sector banks.

Speaking at an interactive session organised by the Bengal National Chamber of Commerce and Industry (BNCCI), Jayanta Kumar Sinha, chief general manger, Bengal circle, SBI, informed the bank would take measures like extending the repayment tenure and helping viable units turnaround through financial support.

The bank would also consider second restructuring of the SME accounts, in keeping with the RBI guidelines, he said.

 

The total SME portfolio of the bank in the Bengal circle is Rs 8,285 crore, which is 54 per cent of its total SME and priority sector lending. This year SBI plans to disburse Rs 2,200 crore of fresh loan to the SMEs, out of which, till now it has disbursed nearly Rs 980 crore.

The bank will undertake separate rehabilitation and restructuring exercises for the SME units. Under the rehabilitation scheme, the bank will give fresh loans to the SMEs, after full amount of the earlier loan has been repaid through compromise settlement and a fresh credit risk assessment.