Odisha on the way to top loan defaulters' list: Chaudhuri, SBI

The State Bank of India (SBI) is worried over the rising trend in Odisha of people taking loans and showing no interest to pay back. Though the problem exists in other states too, Odisha seems headed to top the trend. Pratip Chaudhuri, SBI chairman, who came here to address the two-day conclave of the bank's general managers, expressed serious concern over the situation.

Odisha's gross non-performing asset (NPA) presently stands at 5%, much above the 3.5% national figure. He estimated the amount at nearly Rs 1,800 crore, with agriculture, small and medium enterprises (SME) sector accounting for the maximum default at nearly Rs 1,000 crore, a jump from the earlier figure of Rs 862 crore and still rising. "The NPA position in Odisha is quite high. States like Andhra Pradesh, UP and West Bengal have similar performances as well," Chaudhuri.

The SBI chief said the issue had earlier come up for discussion last month at a meeting in Kolkata, in the presence of Union finance minister. "I think we need help from the government to do something," Chaudhuri said. He hoped the situation to change after production of crops for the season is over. On the defaulting industries, he said the SBI had decided not to take a hard stand for realization of loans. "Loans have been given for steel and coal projects. We have information that they are not able to source raw material. Our endeavour is not to paralyze the projects, but to support them. We are prepared to wait a little more," he said.

The SBI with 670 branches in Odisha has a total deposit of Rs 37,000 crore and Rs 15,743 crore given as advance. This is excluding loans given to industrial projects, he said. The loan amount includes home loans worth Rs 2,245 crore given to 52,000 customers and Rs 874 crore education loans given to one lakh students.

Chaudhuri said the SBI, the NPA position notwithstanding, has been doing its best to reach out to rural masses with banking services. "The bank during the current year will recruit about 500 non-officer employees with proficiency in Odia," he said. The SBI chief said all saving account holders starting from March would be entitled to Rs 4 lakh worth accident insurance policy at a nominal premium. The bank is also going to introduce 'multi-check facilities' so that customers can use the cheques in any branch across the country. This apart, levy on outstation cheques is going to be removed in the next few months. "All this will be done in the next three months," he said. Chaudhuri said the SBI is expected to record a good third quarter profit, to be known in a few days, of which he declined to divulge details yet. The SBI's first and second quarter profits stood at Rs 1,550 crore and Rs 2,850 crore, he said.

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