A recent press report said that the country’s largest lender the State Bank of India, which has witnessed huge erosion in its net profit, has set up 14 account tracking centres to check non-performing assets.
Ms. Namo Narain Meena, minister of state for finance, said at the Rajya Sabha that the State Bank of India has informed that it has set up account tracking centres in all its 14 circles to check non-performing assets (NPAs.
Ms. Meena also confirmed that SBI has informed that the Institute of Chartered Accountants of India (ICAI) had sought reasons for higher provisions of NPAs for the fourth quarter of 2010-11.
Reports added saying that SBI’s profits pitched nearly 99% to 20.88 crore for the quarter-ended March 31, 2011, versus 1,866.60 crore it had posted for the same period last year. One of the major denting factors was an 82% jump in its total provisioning which increased to 6,059 crore.
It is important for the bank to keep an eye on its bad loans as it is facing a slow down in its loan business due to the hike in interest rates. The hike in interest rates have made all its loans including home loan, personal loan, vehicle loan, business loan etc costlier to the borrowers.