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- NPA loan accounts under Micro, Small & Medium Enterprises, with real account balance of above Rs.2.00 lacs and upto Rs.10 Crore classified as Standard / Doubtful / Loss as on 30.09.2009.
- NPA loan accounts under Micro, Small & Medium Enterprises, with real account balance of Rs.2.00 lacs and below and classified as Sub-standard assets as on 30.09.2009.
- NPA loan accounts under Micro, Small & Medium Enterprises, with real account balance of Rs.2.00 lacs and below and classified as Doubtful & Loss assets as on 30.06.2009.
The scheme will not, however cover cases of Fraud, Malfeasance, Wilful default, Decreed accounts by courts and Cases where settlement has been confirmed by Lok Adalat. |
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CATEGORY |
SETTLEMENT FORMULA |
For loans with real account balance of Rs.2 lacs & below |
Sub-Standard Assets |
Real account balance as on date of NPA
minus recoveries after date of NPA
+ 6% simple interest from the date of NPA on reducing balances |
Doubtful / Loss Assets |
75% of the real account balance as on 30.06.2009 minus subsequent recoveries received if any. |
For loans with real account balance of above Rs.2 lacs & upto Rs.10 Cr. |
Sub-Standard Assets |
Real account balance as on date of NPA
minus recoveries after date of NPA
+ 6% simple interest from the date of NPA on reducing balances |
Doubtful Assets |
Real account balance as on date of NPA
minus recoveries after date of NPA |
Loss Assets |
90% of (Real account balance as on date of NPA
minus recoveries after date of NPA) |
In case of loan accounts with real liability of Rs.10 lacs and above as on the date of NPA, the settlement formula will be as above or Net Present Value (NPV) of available securities Primary as well as Collateral and Securities attached by the court before Judgement (ABJ), whichever is higher. |
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The settlement amount arrived at as above, should be paid in one lump sum amount without interest within 30 days of acceptance of OTS offer. In deserving cases, the settlement amount may be paid in instalments within a maximum period of 90 days from the date of acceptance, by depositing at least 25% of the settlement amount as down payment. |
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The scheme is operative from 08.01.2010 and valid upto 30.09.2010. However, for Loans with real account balance of Rs.2 lacs & below classified as Doubtful and Loss assets, the validity of the scheme is 31.03.2010. |
For further clarifications if any, the borrowers may contact the branch concerned. |
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