A recent press report said that State Bank of India has constituted rural recovery teams (RRTs) and activated account tracking centres in order to undertake recoveries due to the huge jump of bad loans by Rs 5,791 crore in 2010-11 (April to March).
Reports said that the bank has put together RRTs, with each team comprising up to six officials accprding to the size and complexity of bad loans. The officials will visit the villages and inquire with defaulting farmers and other borrowers as to why they have not payed their loan installment.
Reports said that out of the net increase in NPA to Rs 5,791 crore in 2010-11 those arising from the agriculture segment accounted for 38 per cent ie. Rs 2,203 crore. It added saying that the total outstanding NPAs of Rs 25,326 crore as of March-end 2011, bad loans from the agriculture segment accounted for 18 per cent (or Rs 4,524 crore).
Mr A. Krishna Kumar, Managing Director (National Banking Group), SBI told the press that the RRTs have given good results to the bank in certain States, especially in the northern region, where NPAs in the agriculture sector have started reducing.
He added saying that in case the borrowers don’t respond to RRTs and ATCs, their accounts will be automatically transferred to the stressed assets management group which will take further steps such as slapping notices under SARFAESI Act, filing legal cases, etc.
The bank is country’s largest lender offering many loans sych as home loan, personal loan, car loan, busines loans, agricultural loans etc.