There’s some respite at State Bank of Mysore on the non-performing assets (NPAs) front. “At present, accounts continue to slip into NPAs. But the pace has slowed down compared to a year ago,” Sharad Sharma, Managing Director, State Bank of Mysore, told Business Line . “The downturn will stop only when a good amount of credit offtake takes place, hopefully in the next six months,” he added.

The bank has taken steps to stem the NPA rot and has conducted regular recovery drives. In addition, SBM has set up a stressed assets monitoring group within the bank and is headed by a general manager.

“Retail NPAs are under control. After some restructuring and one-time settlement it is yielding results,” said Sharma.

The bank has also begun to offer one-time settlements. “We initiated a one-time settlement scheme for loans up to ₹10 lakh. It was a success, for in a short time we were able to recover ₹100 crore of agricultural loans,” said Sharma.

Speaking on restructured accounts turning NPAs, he said: “Restructured NPAs one-and-a-half years ago have turned healthy and have started to pay us within the stipulated time. However, there is no demand for credit. It is just opposite of what we witnessed during 2009-11. Brakes have been applied at present,” he explained.

SBM has seen stressed assets from infrastructure, roads, power, and iron and steel sectors. NPAs under the corporate and institutional segments are mainly through the SBI consortium, of which SBM is a part.

The net NPA level at the end of the third quarter ended December 31, stood at ₹1,889 crore, compared with ₹1,656 crore at the end of the second quarter ended September 2013.

Sharma said NPAs under housing is 1.4-1.5 per cent, SME and C&I (commercial and industrial) 7.5-7.6 per cent. “We want it to be much lower and are doing our best for it.”

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