State Bank of India is planning to divest 37% of its bad loans, amounting to INR 180 billion. Soundara Kumar, Head of Asset Management Division of State Bank said, "For the first time in recent years we are looking at selling non-performing loans. We've been trying to recover all these loans on our own so far, with some success.

Large parts of the stressed assets are backed by solid collaterals. So sale or recovery of these assets shouldn't be very difficult."