DEBT RECOVERY

MANAGEMENT OF
SBI

Presented by:
PRANJALA MISHRA
 BRIEF INTRODUCTION OF SBI

State Bank of India was founded nearly

two centuries ago. State Bank of India
(SBI) is India's largest commercial bank.
SBI has a vast domestic network of over
11,000 branches (approximately 14% of
all bank branches) and commands one
fifth of deposits and loans of all scheduled
commercial banks in India.
SEVEN BANKING SUBSIDIARIES OF
STATE BANK GROUP

1-State Bank of Bikaner and Jaipur

(SBBJ)
2-State Bank of Hyderabad (SBH)
3-State Bank of India (SBI)
4-State Bank of Indore (SBIR)
5-State Bank of Mysore (SBM)
6-State Bank of Patiala (SBP)
7-State Bank of Travancore (SBT)
 MEANING OF DEBT

Debt is that which is owed; usually

referencing assets owed, but the term can
also cover moral obligations and other
interactions not requiring money. In the
case of assets, debt is a means of using
future purchasing power in the present
before a summation has been earned.
Some companies and corporations use
debt as a part of their overall corporate
finance strategy.
 TYPES OF DEBT

1) Secured and unsecured debt

2) Private and public debt
3) Syndicated and bilateral debt
4) Other types of debt
 MEANING OF RECOVERY
MANAGEMENT

Recovery Management is the process of

planning, testing, and implementing the
recovery procedures and standards required to
restore service in the event of a component
failure; either by returning the component to
normal operation, or taking alternative actions
to restore service.
 OBJECTIVES OF RECOVERY
MANAGEMENT OF SBI

 NPA REDUCTION
 DEPOSIT GROWTH
 ADVANCE GROWTH
 AIMS OF RECOVERY MANAGEMENT

 Indicative Non Performing Assets (NPA) to be

brought to zero.
 No account should be NPA for non renewal/non
review.
 NPA recovery through bank adalat should be
organized once in a month.
 NPA account in Housing Loan are to rephrased in all
eligible cases with top priority.
 People at grass root level need to understand what
is to be done and proper communication of
instructions is the key for better performance.
VARIOUS RECOVERY PROCEDURE

 REASONS FOR DEFAULT

 DEMAND NOTICE
 LEGAL NOTICE
 TRANSFER TO NPA ACCOUNT
VARIOUS DEBT RECOVERY
PROCESS OF SBI

 APPOINMENT OF MRT TEAM

 CONDUCT OF RECOVERY CAMP
 COMPROMISE PROPOSAL
 LOK ADALAT
 APPONMENT OF DEBT RECOVERY
OFFICER
 CONCLUSION

 Financial distress and insolvency are broad

concepts.
 It implies investment rates of return fall short of
hurdle rates e.g. capital costs on a sustainable basis
 The primary objective of recovery Management is to
ensure that service level requirements are achieved.
 The magnitude of recovery amount overdue is one
of the most important indicator of financial health of
a bank.
 This is accomplished by having recovery procedures
in place that will restore service to a failing
component as quickly as possible.
Growth of NII and Fee Income ( In
Percentage)
 RECOMMENDATION

 Debt collection software should be developed.

 Strong debt recovery team should be appointed.
 Proper Credit risk manager should be appointed.
 Loans should be properly workout.
 Proper analysis of seasonal loan should be done.
 Projection analysis should be done.
 Proper analysis of secured and unsecured credit,
debt recoveries and management turnover
should be done properly.
REFERENCES

 http://www.google.co.in/
 http://moneycontrol.com/
 http://www.scribd.com.
 www.AllBusiness.com
 http://www.reuters.com/finance/stocks/ratio
 file://bankr/Finance%20and%20Investment
%20Banking
 F:\sbi bankr\ - Wikipedia, the free
encyclopedia.mht
 file:///F:/sbi%20bankr/CapitalMarket_com