SBI Loan Recovery: Rs 1 Lakh Crore Gap in 309 NCLT Settlements Over 9 Years

State Bank of India (SBI) recovered around Rs 1 lakh crore less than the amount it claimed in loans resolved through the National Company Law Tribunal (NCLT) and similar forums over a nine-year period, according to an RTI response cited in a Moneylife report.

The data obtained through an RTI application shows that SBI took 309 loan accounts to the NCLT or other resolution forums between FY2017-18 and FY2025-26. The total claims across these cases stood at Rs 1,49,895 crore, while the bank recovered Rs 49,727 crore through approved resolution plans.

The difference between the claims and recoveries amounted to Rs 1,00,168 crore, representing a haircut of roughly 67%.

In other words, SBI recovered about one-third of the amount claimed across the 309 accounts covered by the data. The figures reflect the difference between the claims pursued by the bank and the amounts eventually recovered through resolution plans.

The data provides an overview of recoveries through insolvency-related proceedings, but it does not mean that every NCLT case resulted in a similar level of haircut. The figures cover multiple borrowers and cases over several financial years.

Separately, the RTI response highlighted SBI's technical or prudential loan write-offs involving large borrowers.

Between FY2016-17 and FY2025-26, SBI technically or prudentially wrote off Rs 1,51,857 crore in loans involving borrowers with dues exceeding Rs 100 crore. The bank recovered Rs 20,838 crore against these write-offs, equivalent to around 14% of the amount written off.

NCLT haircuts and technical or prudential write-offs are different processes. A haircut refers to the gap between a creditor's claim and the amount recovered under a resolution plan. A technical or prudential write-off is an accounting treatment for loans that a bank does not expect to recover fully and does not automatically mean that the borrower is legally freed from the debt.

The largest write-off in the category of borrowers owing more than Rs 100 crore was recorded in FY2019-20. SBI technically or prudentially wrote off Rs 46,348 crore that year and recovered Rs 4,548 crore.

The numbers changed considerably by FY2025-26. SBI wrote off Rs 2,690 crore in this category and recovered Rs 2,677 crore.

The RTI data also covers borrowers with outstanding loans below Rs 1 crore. According to the report, SBI wrote off Rs 63,103 crore involving such borrowers between FY2016-17 and FY2025-26.

Against those write-offs, the bank recovered Rs 6,815 crore, or around 11% of the amount written off.

The figures for borrowers owing more than Rs 100 crore and those with loans below Rs 1 crore represent separate categories and should not be treated as directly comparable.

The RTI application also sought details of borrowers whose loans above Rs 100 crore had been written off or settled through NCLT proceedings involving haircuts.

SBI did not disclose the names. The bank cited exemptions under Sections 8(1)(d), 8(1)(e) and 8(1)(j) of the Right to Information Act, referring to commercial confidence, information held in a fiduciary capacity and personal information.

The refusal has also drawn attention because SBI had reportedly provided similar information to the same applicant in 2020. In the latest response, however, the bank declined to provide the names under the cited RTI exemptions.

Taken together, the figures show the scale of stressed-loan resolution at India's largest lender. SBI had claims of Rs 1,49,895 crore across 309 NCLT and similar resolution cases and recovered Rs 49,727 crore, resulting in a reported haircut of Rs 1,00,168 crore.

Separately, the bank recorded Rs 1,51,857 crore in technical or prudential write-offs involving borrowers with dues above Rs 100 crore and recovered Rs 20,838 crore against them.

These figures involve different processes and categories and cannot be combined to calculate SBI's overall losses. They nevertheless highlight the challenges banks face in recovering money from stressed loans through insolvency proceedings, settlements and write-offs.