Thirucananthapuram : The country’s largest government bank is mulled for sale and for added glaze to the offer, a whopping Rs 1.45 lakh crore has been written off. The bigtime non-performing assets were a drag on the balance sheet. Needless to say, the beneficiary of these write-offs are huge business majors. The bank actually recovered 13 percent of bad debts on book, all of which pertained to small borrowers.
As privatisation plans gain momentum, the corporate loans are rising and now form 30 percent of all loans. Meanwhile, smalltime borrowings are tumbling. Addani Capital has been outsourced with disbursement of small loans.
Also, SBI’s 8000 rural and urban branches are stopping small loan disbursements and consequential to this, the Financial Inclusion and Micro Market Division based at SBI headquarters in Mumbai has been shifted to Delhi.
