NEWS

SBI Offers Scheme To Settle NPAs

FW Bureau

Chandigarh, May 27

With a view to help the small and medium units affected by market conditions, State Bank of India is very positive about its one-time settlement scheme of NPAs of SME segment called 'SBI OTS SME 2010'. This scheme which is now open for the customers in the tricity, covers NPAs in SME sector on or before March 31, 2009, with outstanding upto Rs 1 crore, for any reason except cases involving fraud, malfeasance, willful default or cases already decreed by courts. Speaking about this scheme, S K Sehgal, Chief General Manager, Chandigarh Circle, stated that the bank has come out with this scheme based on feedback received from industry associations and we expect to cover up all the NPAs of the industry. "This is a good scheme for SME units since the Bank is also offering discounts for early payment ranging from 15 percent to 75 percent of the outstanding, depending upon the age of the account and the period within which the full eligible amount under the OTS scheme is offered to be paid by the borrowers/SME units. The final payment under the scheme can, however, is made upto 31st March, 2011," he added. While the bank is making arrangements for contacting all eligible account holders under the scheme, it is an excellent opportunity for all customers who have suffered due to market conditions in the past and want to now move ahead in life with a clean slate. "The last date for receipt of applications under the scheme is July 31, 2010,” said Sehgal.

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