The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Kumar says India's state-bank reform will bear fruit this year

SBI head outlines path to asset resolution; says sector still shocked by PNB fraud.

The chairman of State Bank of India (SBI) expects around $12 billion of non-performing assets to come off the bank’s books as a consequence of state-owned bank reform and believes that across the whole industry there will be a transformative effect.

Rajnish Kumar, speaking with Euromoney at the Asian Development Bank annual meeting in Manila, believes that despite concerns that bankruptcy and resolution rules are stifling rather than streamlining the process of asset resolution, progress is being made.

“It is working,” he says. “The concerns are whether the rules have become too tight and in particular what will be the impact on the SME sector.

Rajnish_Kuma_FREE-160x186.

Rajnish Kumar,
SBI

“But I think on the whole, the two measures [a revised framework for resolution of distressed assets issued by the Reserve Bank of India (RBI) on February 12 and the launch of the Insolvency Bankruptcy Court] are likely to bring a lot of discipline in the lending and borrowing markets in this country.”

The RBI’s February announcement required that, from March, lenders had 180 days to implement a resolution plan on bad loan accounts of Rs20 billion ($294 million) and above, failing which defaulting borrowers must be referred to insolvency courts.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree