State Bank of India introduced the one-time settlement (OTS) scheme which will help the micro, medium and small industries to establish and to grow their business. To attract more people, SBI is offering many discounts.
SBI observed a net increase of Rs. 3902 crore in bad loans in its MSME portfolio. Many MSME enterprises have suffered a lot due to the enhancement in the rates of loans. In the initial stage of the current fiscal year, the highest net increase in OTS loans for SBI was in the commercial portfolio of Rs. 6,469 crore, followed by the MSME industry.
On December end 2011, MSME gained profit and accounted for 16% of the bank’s overall lending portfolio of Rs. 8, 46, 266 crore. The deposit will be done to commit the customers of OTS. SBI will receive applications for negotiation settlement up to July 31, 2012.