A recent press report said that state Bank of India the country’s largest lender has violated the Reserve Bank of India’s credit exposure norms during three consecutive years with regard to its loan provided to Mukesh Ambani-led Reliance Industries.
The bank is already facing such problems with Air India and other telecom firms that are under investigation in the 2G scam. The bank has also disclosed that its lending to RIL was in excess of the limits prescribed under the RBI’s prudential credit norms.
The bank has violated the prudential limits for single-borrower exposure during the fiscal ended March 31, 2011. The bank has also named Reliance Industries Limited as public sector majors such as Indian Oil and BHEL as three such borrowers in its annual report.
Reports also said that it is the third straight year where SBI has exceeded the single-borrower ceiling with regard to Reliance Industries Limited, as per the bank’s annual reports for the past three financial years.
SBI has now put an end to the teaser loans(home loan), the new chairman Mr. Pratip said that SBI Easy Home Loan and SBI Advantage Home Loan (teaser rate products) will be replaced by floating interest rate schemes on par with other commercial banks