SBI to Hire Up to 4,000 Employees to Strengthen Loan Recovery Operations
India’s largest lender, State Bank of India, is preparing to hire as many as 4,000 employees over the next year to build a dedicated loan recovery and collection team.
The move comes at a time when SBI’s asset quality is at its strongest in nearly two decades, with bad loans falling to record lows.
Focus on Staying Ahead of Stress
SBI Chairman C. S. Setty said the new hires will help the bank strengthen both underwriting and collections as its loan book continues to grow.
Speaking to Moneycontrol after the bank’s fourth-quarter results, Setty said SBI has significantly improved the way it evaluates borrowers and now wants to build a more robust collections system.
In his interaction with the publication, Setty said, “Nobody can get this kind of asset quality, and we completely revamped our underwriting. We are now launching a strong collections mechanism. We will be employing almost 3,000 to 4,000 people on the loan-collection front.”
Recruitment Through Subsidiaries
Setty clarified that these positions will not be filled from SBI’s current staff.
Instead, the bank plans to recruit through its subsidiary network. The employees will work on the ground but will be centrally managed by SBI to ensure tighter oversight and better coordination.
“They will not come from the existing employee base. Instead, we will look to leverage our subsidiary. They will be on the field but centrally managed by us,” he said.
Why SBI Is Expanding Its Collection Team
The decision is aimed at identifying early signs of stress before loans turn into non-performing assets (NPAs).
The move comes at a time when SBI’s asset quality is at its strongest in nearly two decades, with bad loans falling to record lows.
Focus on Staying Ahead of Stress
SBI Chairman C. S. Setty said the new hires will help the bank strengthen both underwriting and collections as its loan book continues to grow.Speaking to Moneycontrol after the bank’s fourth-quarter results, Setty said SBI has significantly improved the way it evaluates borrowers and now wants to build a more robust collections system.
In his interaction with the publication, Setty said, “Nobody can get this kind of asset quality, and we completely revamped our underwriting. We are now launching a strong collections mechanism. We will be employing almost 3,000 to 4,000 people on the loan-collection front.”
Recruitment Through Subsidiaries
Setty clarified that these positions will not be filled from SBI’s current staff. Instead, the bank plans to recruit through its subsidiary network. The employees will work on the ground but will be centrally managed by SBI to ensure tighter oversight and better coordination.
“They will not come from the existing employee base. Instead, we will look to leverage our subsidiary. They will be on the field but centrally managed by us,” he said.
Why SBI Is Expanding Its Collection Team
The decision is aimed at identifying early signs of stress before loans turn into non-performing assets (NPAs).Next Story