In the wake of rising delinquency, Pratip Chaudhuri, Chairman, State Bank of India, advised corporates to be more realistic in their loan repayment schedules.

“In future, when you propose to take a loan, negotiate for a longer term … be realistic in your repayment schedule and in your schedule of commencement of commercial production,” he advised a gathering of corporates, who had assembled at a banking conclave organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

He felt that Indian industry was competent and the threat of non-performing assets was over-played. On SBI’s non-performing assets, he said that at present a review was being made and the situation should improve over the next two-to-three quarters. “We have asked corporates either to sell some of their non-core assets or to infuse capital through private equity,” he said.

He said that SBI had recently set up a 20-man strong panel of sector experts to help it appraise projects from the technical point of view.

Keywords: loan repayment

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