The State Bank of India (SBI), a state-owned financial services company, has announced that it may restructure loans given to microfinance institutions (MFIs) that enter “non-performing” status.
SBI Chairman, Mr O P Bhatt, said “wherever [MFI loans] are likely to fall sick, restructuring will have to take place.” It was reported that the loan restructuring would involve the deferment of loan repayments to SBI for MFIs facing increasing default rates. For fiscal year 2009, SBI reports total assets of INR 9.64 trillion (the equivalent of USD 214 billion) and total deposits of INR 7.42 trillion (the equivalent of USD 165 billion), a return on assets of 1.04 percent and a return on equity of 15 percent.
By Witt Gatchell, Research Associate
About State Bank of India (SBI):
The State Bank of India (SBI), founded in 1955 by an act of Parliament, is a state-owned bank and financial services company in India. SBI provides investment, consumer, commercial, retail and private banking services, as well as asset management, pension, mortgage and credit card services. For fiscal year 2009, SBI reports total assets of INR 9.64 trillion (the equivalent of USD 214 billion) and total deposits of INR 7.42 trillion (the equivalent of USD 165 billion), a return on assets of 1.04 percent and a return on equity of 15 percent.
Sources and Additional Resources:
[1] The Economic Times: “SBI likely to seek restructuring of MFIs loan” http://economictimes.indiatimes.com/news/news-by-industry/banking/financ…
MICROCAPITAL BRIEF: Finance Minister of India Vows Not to Strangle Indian Microfinance Industry
https://www.microcapital.org/microcapital-brief-finance-minister-of-india…
MicroCapital Universe Profile: State Bank of India (SBI)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sta…
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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