NOTE: SBINEWS DOES NOT PERMIT CIRCULATION OF ATTACHMENTS. ATTACHMENTS, IF ANY, CIRCULATED WILL BE ONLY BECAUSE OF VIRUSES. PLEASE,THEREFORE, IGNORE ATTACHMENTS IF ANY IN SBINEWS MESSAGES ************************************************************************ SBI to spin off Rs 5000 cr stressed assets (Business Standard) Poornima Mohandas / Mumbai September 22, 2004 Move follows recommendations by McKinsey. State Bank of India (SBI) will hive off Rs 5,000 crore of stressed assets into a separate division. This follows recommendations by consultants McKinsey & Co, appointed to draft a business process re-engineering exercise for the bank. The executive committee of the SBI recently approved the setting up of the new division. The stressed assets division, to be headed by chief general manager T M N Singh, will look after all the impaired loans of the bank. Additionally, it will also have charge over the written-off accounts for recovery possibilities. Singh was earlier in charge of both credit and non-performing assets (NPAs) at SBI. The net NPAs of SBI as on March 31, 2004, was at Rs 5,440 crore (3.48 per cent) and gross NPAs was at over Rs 12,000 crore. SBI is aiming for a net NPA to net advances ratio of 2 per cent by March 2005 which would work out to Rs 2,500 crore. As part of the move, nine rehabilitation and recovery branches of SBI will now come directly under the stressed assets division. This will give focussed attention on this activity, said bank officials. Earlier, the nine branches functioned under local head offices. The bank has recently completed its the restructuring exercise carved out a whole new structure with seven main divisions or profit centres. These divisions - retail, agriculture, SMEs, government business, corporate accounts group (for large corporate accounts of over Rs 100 crore), project finance and mid-corporates group (for clients with a turnover of over Rs 25 crore)- have been carved out of the corporate accounts group and the national banking group which were set up in the mid 1990s. The stressed assets group will be part of the mid-corporate group. Each of these groups are being headed by a chief general manager or a general manager. Out of the eight divisions, there will be some new groups as the agriculture division, SME, government business, mid corporates and stressed assets. Meanwhile, the national rollout of the mid corporates group has been kicked off with the Mumbai pilot tested and reviewed. The cogs of the group extend across seven regional offices and will be fully rolled out by October 2004. *************************************************************************** Mailing list (sbinews@xxxxxxxxxxxxx) related information: News/articles about SBI and Banking related matters published in the print media, Internet etc will be circulated through this Mailing List. The messages in this list will help in improving awareness of SBI and its activities vis-a-vis the happenings in the Banking industry. This should be of help to all staff members of SBI, particularly those who are preparing for promotional written tests/interviews/group discussions. Subscription to this Mailing List is simple and FREE. Please check the procedure below. Please share this information with other colleagues/branches that could be interested in subscribing to this Mailing List. The messages circulated here should not be deemed to have the official endorsement of the SBI or any of its employees. The correct factual position may be ascertained from official sources. To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx with the word 'subscribe' without the quotes in the subject of the email message. To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx with the word 'unsubscribe' without the quotes in the subject of the email message. Archives (old messages) are available for viewing at: //www.freelists.org/archives/sbinews Click on the month-year at the lower left corner to view messages posted during that month. This is an announcements/newsletter type mailing list i.e. only the Moderator/s can post messages to the list. This mailing list is maintained and moderated by Sri. R.S.Pai, currently working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities Links