SBI alters how it sanctions credit to avoid bad debt

......Acknowledging that there had been a “sharp increase in non-performing assets (NPAs) in the first three quarters of the year, which abated only in the fourth quarter”, Chaudhuri told the bank’s shareholders that a major reason for the high bad debt accumulation was the slowdown in economic growth and other macroeconomic factors. He added that the bank’s credit policy also needed to be rearranged. The committee was formed to “analyse and address the reasons for relatively higher NPAs in comparison to the other banks”, and to know the “reasons for our relatively low share in better performing business segments”. It has different subcommittees that comprise heads of all business groups and segments. The main committee held 17 meeting throughout the year, while the subcommittees met frequently, the annual report said.........

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