Small public sector banks in drive to shed corporate and big biz loans

Bankers caution that this would be a lengthy affair and cutting of corporate exposure by at least 15 per cent by March 2019 was very tough

The government has asked small public sector banks (PSBs) to reduce corporate loan exposure but many of them are under a Prompt Corrective Action (PCA) plan and already at work to sell bigsize bad loans, limit further exposure and trim the loan book through securitisation.

Top PSB executives said the government had asked for a cut in corporate and big business loans by at least 15 per cent by March 2019, as part of its recapitalisation plan. However, the process of parting with corporate loans and a virtual halt to further exposure has been on since the early part of this