To effectively deal with the problem of bad loans, SBI is in the process of introducing a system of early warning signals to detect NPAs and take corrective action.
"We are in the process of introducing a system which would generate Early Warning Signals in the form of actionable alerts that would help the bank to identify assets at the incipient stage of stress and facilitate their early resolution," SBI said in its annual report 2014-15.
This is a part of its proactive management of stressed assets to contain and control NPAs, it added.
Talking about various initiatives on this, it said, the bank also tied up with GE Capital for proactively making calls to stressed accounts (SMAs) in retail segment and real estate sector to prevent slippages.
SBI has Assets Tracking Centres at circle level to track and monitor probable NPA accounts (SMAs) in SME and agriculture segments, for making calls on the customers and follow up for recovery.
Tele-calling to borrowers or guarantors has been introduced at Stressed Assets Resolution Branches to help in their recovery efforts, it said.
In order to simplify and add technology in the work flow of the call centres, a web-based portal has been put in place, to efficiently monitor the call centre process, it said.
The bank has formed various committees to periodically review stressed assets and suggest resolution and turn around strategies, it added.
During 2014-15, the bank's asset quality improved as net non-performing assets (NPAs) or bad loans were trimmed to 2.12 per cent of net advances as against 2.57 per cent at the end of previous fiscal.
The bank's gross NPA in absolute terms declined to Rs 56,725 crore while the net NPA came down to Rs 27,591 crore at the end of March 2015.
At the same time, gross NPAs also came down to 4.25 per cent of gross advances, from 4.95 per cent at the end of March 2014.
