SBT offers one-time settlement scheme

Thiruvananthapuram: State Bank of Travancore (SBT) has come out with an offer of one-time settlement of dues of its borrowers whose accounts have been classified as non-performing assets as on 31 March 1997. The offer is applicable to cases where the outstanding ledger balance is Rs 1 crore and below on the cut-off date.

According to an SBT statement, the scheme covers advances classified as substandard assets as on 31 March 1997, and which had subsequently turned into doubtful or loss assets. Advances classified as doubtful or loss assets as on that date will also be covered by the scheme. Cases pending before courts or debt-recovery tribunals or the Board for Industrial and Financial Reconstruction will be covered, subject to a consent decree obtained from them. But decreed accounts and those accounts where recovery certificates have been issued will be outside the purview of the scheme.

The scheme offers the option to pay the settlement amount in one lump sum or in a down payment of 25 per cent, with the balance in instalments spread over a period of 12 months with interest. The scheme is open till 31 March 2002.