SBI WROTE OFF RS 1.51 LAKH CRORE

 The details of the Right to Information (RTI) response regarding the State Bank of India's (SBI) non-performing asset (NPA) resolutions through the National Company Law Tribunal (NCLT) and similar forums include:

NCLT Haircut Breakdown (FY2017–18 to FY2025–26)

• Total Admitted Claims: ₹1,49,895 crore across 309 loan accounts.

• Amount Recovered: ₹49,727 crore.

• Haircut Taken: ₹1,00,168 crore (approximately 66.8% or 67% of total claims lost).

  
  

Key Takeaways from the Data

• Notable Years:

  • FY2018–19: SBI claimed ₹48,425 crore across 34 accounts but recovered only ₹26,402 crore, enduring a haircut of ₹22,023 crore.

  • FY2021–22: Out of ₹22,408 crore in claims across 40 accounts, the bank recovered ₹5,337 crore, taking a 76% haircut (₹17,071 crore).

  • FY2025–26: SBI settled ₹4,928 crore across 30 accounts for ₹1,348 crore, absorbing a 73% haircut (₹3,580 crore).

Separate Technical Write-Off Disclosures

• Large Defaulters (>₹100 Crore): Over the decade from FY2016–17 to FY2025–26, SBI technically wrote off ₹1,51,857 crore in large loan accounts, recovering only ₹20,838 crore (~13.7%).

  
  
  

• Small Defaulters (<₹1 Crore): Over the same decade, SBI written-off ₹63,103 crore for small accounts, recovering ₹6,815 crore (~10.8%).

Borrower Identity Redaction

• Pune-based RTI activist Vivek Velankar sought the specific names of defaulting borrowers who received haircuts or large write-offs.

• SBI declined to release borrower details, citing exemptions under Sections 8(1)(d), 8(1)(e), and 8(1)(j) of the RTI Act regarding commercial confidence, fiduciary capacity, and personal information.

  
  
  

The key findings from the Right to Information (RTI) response regarding the State Bank of India's (SBI) technical or prudential write-offs for large corporate defaulters are summarized below:

Technical Write-Offs Breakdown for Large Defaulters (>₹100 Crore)

• Total Write-Off Amount: Between FY2016–17 and FY2025–26, SBI technically or prudentially wrote off ₹1,51,857 crore in loan accounts where borrowers owed over ₹100 crore each.

• Recovery Rate: Against this massive amount, the bank managed to recover only ₹20,838 crore, which represents a recovery rate of approximately 13.7% to 14%.

Key Yearly Trends

• Peak Write-Off Year (FY2019–20): The single largest annual write-off in this 10-year period occurred in FY2019–20, when SBI wrote off ₹46,348 crore. To date, only ₹4,548 crore (around 10%) of that year's written-off amount has been recovered.

• Recent Performance (FY2025–26): In FY2025–26, SBI wrote off ₹2,690 crore in this category and recorded a significantly higher recovery of ₹2,677 crore.

  
  
  

Important Context & Distinctions

• Write-Offs vs. NCLT Haircuts: The RTI figures differentiate technical write-offs from resolution haircuts. A technical write-off is an internal accounting mechanism to remove non-performing assets (NPAs) from the balance sheet for tax and reporting purposes; it does not legally release the borrower from their repayment obligation.

• Disparity with Small Borrowers: During the same 10-year window, SBI wrote off ₹63,103 crore for small borrowers (those owing under ₹1 crore) and recovered ₹6,815 crore (~10.8%). Activist Vivek Velankar highlighted that while small borrowers face swift and public recovery procedures (such as public notices and asset auctions), the names of large corporate defaulters responsible for over ₹1.5 lakh crore in write-offs remain withheld.

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TAX FREE BONDS WITH SECURED FIXED INCOME

 

Bond Offerings - August 2026 AAA & AA Rated Bonds | Available on Centicity Dear Investors,   Review these fixed-income TOP investment offerings and invest effortlessly using your  Centicity account. Name of Security Nature Face Value (Rs.) Coupon Rate (P.A.) YTM / YTC Rating Years to Maturity (Yrs) 7.45% Mahindra Rural Housing Finance Ltd Ltd 2030 Secured 1,00,000 7.45% 7.27% CARE - AAA 4.25 7.50% Tata Capital Housing Finance Ltd 18 Apr 2031 Unsecured 10,00,000 7.50% 7.46% CARE - AAA 4.66 6.88% HDFC Bank 16 Jun 2031 Unsecured 10,00,000 6.88% 6.68% ICRA - AAA 4.82 7.80% HDFC Bank 06 Sep 2032 Unsecured 10,00,000 7.80% 7.87% ICRA - AAA 6.04 8.65% MUTHOOT FINANCE LIMITED 12-JUN-2031 Secured 1,00,000 8.65% 8.14% ICRA - AA+ 4.81 9.25% MUTHOOT FINCORP LIMITED 7-JUL-2032 Secured 1000 9.25% 9.13% CRISIL AA BRICKWORK AA+ 5.88 In India, Tax-Free Secured Bonds are AAA-rated Public Sector Undertaking (PSU) debentures where the annual interest received is 100% exempt from income tax under Section 10(15)(iv)(h). Because the government stopped issuing fresh tax-free bonds after FY 2015–16, these trade exclusively on the secondary market (NSE/BSE, Jiraaf, Wint Wealth, GoldenPi). Due to strong demand from high-tax-bracket investors, they trade at a premium, meaning the effective annual return (Yield to Maturity / YTM) is lower than the face-value coupon rate. Issuer / Bond Series Credit Rating Security / Backing Original Coupon (%) Indicative Effective Annual Return (YTM % Tax-Free) Pre-Tax Equivalent Return (at 30% Slab + Cess) Approximate Maturity NHAI (National Highways Authority) AAA Senior Secured (Govt Assets) 7.60% – 8.75% 5.20% – 5.55% 7.55% – 8.06% 2029 – 2031 IRFC (Indian Railway Finance Corp) AAA Senior Secured (Rolling Stock) 7.34% – 8.63% 5.20% – 5.40% 7.55% – 7.84% 2028 – 2029 REC Limited AAA Senior Secured (Loan Assets) 7.93% – 8.71% 5.25% – 5.50% 7.63% – 7.99% 2027 – 2029 PFC (Power Finance Corp) AAA Senior Secured (Infra Assets) 8.20% – 8.92% 5.30% – 5.55% 7.70% – 8.06% 2028 – 2033 HUDCO AAA Senior Secured (Urban Infra) 7.64% – 8.51% 5.30% – 5.50% 7.70% – 7.99% 2027 – 2032 NTPC / NHPC AAA Senior Secured (Power Assets) 8.10% – 8.91% 5.25% – 5.45% 7.63% – 7.92% 2033 – 2035 Crucial Distinctions Tax-Free vs. 54EC Capital Gain Bonds: 54EC bonds (REC, PFC, IRFC, HUDCO at 5.25% p.a. with a 5-year lock-in) save tax on real estate capital gains, but their annual interest payout is fully taxable. In contrast, the secondary-market tax-free bonds in the table above yield 100% tax-free interest payouts. Capital Gains on Sale: Only the annual coupon is tax-free. If you buy from the exchange and sell before maturity at a profit, the gain is taxed as capital gains (LTCG at 12.5% if held for over 12 months). Who Benefited Most: These instruments offer the highest value to investors in the 30% (or surcharge) tax brackets, as matching a 5.50% net return in taxable fixed deposits would require earning over 8.00% pre-tax. Secured bonds (Non-Convertible Debentures / NCDs) are backed by specific collateral or company assets, giving investors a higher claim priority in the event of default. Returns generally scale inversely with the credit rating. Issuer / Category Credit Rating Security Type Typical Annual Return / YTM (%) Payout Frequency REC / IRFC / PFC (PSU Bonds) AAA Senior Secured 7.15% – 7.75% Annual Tata Capital / L&T Finance AAA Senior Secured 7.50% – 8.10% Annual / Semi-Annual Capri Global / Sammaan Capital AA / AA- Senior Secured 8.50% – 9.25% Annual Muthoot Fincorp / InCred Financial AA- / A+ Senior Secured 9.25% – 10.25% Monthly / Annual Navi Finserv / Fibe (EarlySalary) A / A- Senior Secured 10.30% – 11.25% Monthly / Quarterly Finnable Credit / Arman Financial A- / BBB+ Senior Secured 11.30% – 12.00% Monthly / Per Schedule Keertana Finserv / High-Yield NBFCs BBB / BBB+ Senior Secured 12.00% – 12.90% Monthly / Annual Key Considerations Before Investing Credit Risk vs. Security: While "Secured" means the bond is backed by asset cover (often 1.0x–1.25x), liquidating collateral in a default scenario can take considerable time. Tax Treatment: Coupon income is taxed according to your applicable slab rate. Secondary Market Liquidity: Most listed corporate bonds trade on platforms like Jiraaf, Wint Wealth, or GoldenPi, but secondary trading volumes can vary significantly compared to sovereign securities.

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Specialised Investment Fund (SIF): BEST ALTERNATE OF FIXED DEPOSIT, FIXED RETURN UPTO 15%

A Specialised Investment Fund (SIF) is a SEBI-regulated investment vehicle introduced under the SEBI Mutual Fund Regulations (effective April 1, 2025).

It is designed as a bridge category between traditional retail Mutual Funds (MFs) and high-ticket Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs).

A Specialised Investment Fund (SIF) is a SEBI-regulated investment vehicle introduced under the SEBI Mutual Fund Regulations (effective April 1, 2025). It is designed as a bridge category between traditional retail Mutual Funds (MFs) and high-ticket Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs).

SIFs allow Asset Management Companies (AMCs) to offer more flexible, strategy-driven pooled portfolios—such as long-short equity, sector rotation, and derivative hedging—while operating under the structural oversight, daily NAV transparency, and favorable tax regime of mutual funds.SIFs allow Asset Management Companies (AMCs) to offer more flexible, strategy-driven pooled portfolios—such as long-short equity, sector rotation, and derivative hedging—while operating under the structural oversight, daily NAV transparency, and favorable tax regime of mutual funds.

 A Specialised Investment Fund (SIF) is a SEBI-regulated investment category introduced to bridge the gap between traditional Mutual Funds (MFs) and Portfolio Management Services (PMS).

It allows Asset Management Companies (AMCs) to offer more sophisticated, strategy-driven products—such as long-short equity positions, sector rotation, and derivative hedging—while maintaining mutual fund-style tax efficiency and regulatory oversight.

Key Features & Rules

• Minimum Investment: ₹10 Lakh per investor (at the PAN level) across SIF strategies of a single AMC. (Accredited investors are exempt from this floor).

• Derivatives & Shorting: Unlike traditional mutual funds, SIFs can take unhedged short positions (up to 25% of the portfolio via derivatives) to generate returns or manage risk in falling markets.

• Asset Class Coverage: Investments can be allocated across equities, debt, commodity derivatives, REITs, and InvITs.

• Structure & Liquidity: Offered as open-ended or interval funds, though redemptions may carry notice periods (up to 15 days) depending on the strategy.

  
  
  

SIF vs. Mutual Funds vs. PMS vs. AIF

Feature	Mutual Funds	SIF (Specialised Investment Fund)	PMS (Portfolio Management Services)	AIF (Alternative Investment Fund)
Target Audience	Retail Investors	High-Net-Worth / Experienced Investors	High-Net-Worth Individuals (HNIs)	Very High-Net-Worth / Institutional
Min. Investment	₹100 / ₹500	₹10 Lakh	₹50 Lakh	₹1 Crore
Shorting/Hedging	Very Restricted	Permitted (Up to 25% derivatives)	Allowed	Fully Permitted
Tax Treatment	Pass-through / MF Capital Gains	MF Capital Gains Taxation	Individual Security Tax Basis	Pass-through / Trust Rules

Key SIF Categories

1. Equity Long-Short Strategies: Focuses on listed equities while taking derivative short positions to capture downward price movements or hedge volatility.

2. Sector Rotation Long-Short: Dynamically shifts weightings between top-performing sectors (e.g., Banking, IT, Auto) based on market cycles.

   
   
   

3. Multi-Asset / Dynamic Allocator: Adjusts capital allocation between debt, equity, commodities, and real estate instruments based on market valuations.

SIFs suit experienced investors with a minimum of ₹10 lakh to allocate, who seek PMS-like derivative strategies with lower entry barriers and mutual fund tax benefits.

Expected Return Profiles by SIF Strategy

• Equity Long-Short SIFs: Target 12% – 18%+ CAGR over long cycles. Designed to deliver equity-like upside during bull runs while using short derivatives to mitigate losses during market corrections.

• Hybrid / Dynamic SIFs: Target 8% – 12% CAGR. Combine long equity, fixed-income debt instruments, and dynamic derivative hedging for balanced growth with minimal drawdowns.

• Fixed-Income SIFs: Target 7% – 9% CAGR. Focus primarily on corporate bonds and debt derivatives to outperform standard bank FDs through tactical duration management.

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