New Delhi: State Bank of India sold non-performing assets worth Rs 3,590 crore to various asset reconstruction companies (ARCs) during 2013-14, the Rajya Sabha was informed on Tuesday.
"The write-offs involved in such sales amounted to Rs 1,892 crore as a part of total write-offs of Rs 12,882.50 crore during 2013-14," Minister of State for Finance Nirmala Sitharaman said in a written reply.
She was relying to a question whether SBI has sold NPAs worth Rs 3,590 crore to asset reconstruction companies while writing off Rs 1,892 crore.
The write off is notional as SBI is holding security receipts in their investment portfolios, which are redeemable over a period of time, she said.
The reasons for preferring sale option are to take care of old and hard core NPAs, where recovery is not commensurate with the efforts; borrowers are not coming forward for settlement despite persuasion and delaying the recovery process by filing frivolous appeals, she added.
The bank has set up a separate dedicated and specialised Stressed Asset Management Group headed by a Deputy Managing Director to resolve high value NPAs which are transferred to this Group, she added.
Replying to another question, Sitharaman said there is no manpower crunch in the public sector banks.
In another response, she said, "no specific request from state government of West Bengal has been received to write off or waive the interest on central loans for a certain period."
As per the latest Union Finance Account for 2012-13, the total outstanding central loans and interest of West Bengal as on March 31, 2013 is Rs 12,894 crore and Rs 1,301 crore respectively, she said.
Debt relief measures are extended as per recommendations of Finance Commissions, she added.
