SBI's Compromise Settlement Policy is Board-approved and formula-led. Winning cases route the file to the right SAM authority with a clean RVS working and a defensible source-of-funds narrative.
SBI is India's largest MSME creditor. Every settlement decision — waiver, structure, timeline — flows through the Bank's Board-approved Compromise Settlement Policy, refreshed each year. The policy is not published in full, but its architecture is well-established across MSME OTS files: a non-discretionary floor tied to Realisable Value of Security, structured waiver bands per NPA vintage, and committee approvals scaled to exposure.
The single biggest lever on an SBI file is routing. Cases above ₹5 Cr sit with the Stressed Assets Management (SAM) branch mapped to the circle; smaller cases stay with the originating branch under AGM (SAM) supervision. Files addressed to the branch head without a copy to the AGM (SAM), Circle Office frequently stall — the branch has neither the authority nor the incentive to escalate on its own.
The second lever is inputs. SBI committees run the case through internal formulas; the proposal that reconciles cleanly to those formulas closes weeks faster than one that argues sentiment. That is where a competent consultant earns their fee — not in headline-discount theatre.
A senior consultant reviews your outstanding, NPA stage and options — no obligation, no cost. All conversations are covered by NDA.
SBI's OTS policy defines who can approve what, and what the RVS-based floor for each waiver is. Every branch/circle/HO band is codified — but the effective approver on most MSME cases is the AGM (SAM) at the Circle Office.
| NPA Stage | Observed SBI Waiver Band | Typical Down-Payment | Balance Window |
|---|---|---|---|
| Sub-standard NPA (0–12 months) | 40–55% | 15–25% | 3–6 months |
| Doubtful (12–36 months) | 55–70% | 10–20% | 3–9 months |
| Loss Asset (36+ months) | 60–80% | 10–15% | 3–12 months |
| Post-SARFAESI 13(4) | 55–75% | 15–25% | 3–6 months |
| Post-Auction shortfall | 70–90% | 10–20% | 3–12 months |
Case review — outstanding, NPA stage, security cover, promoter exposure. 30-minute consultation.
3-year financials, bank statements, GST, sanction letters, hardship narrative and source-of-funds evidence.
Structured proposal referencing RBI framework, RVS working, precedent cases and payment schedule.
Proposal filed with the right authority — SAM branch / SARB / SAG / Regional Collections Head.
Follow-up, counter-offers, precedent deployment and final waiver / structure negotiation.
OTS sanction letter, down-payment, balance tranches, and receipt reconciliation.
No Dues Certificate, security release, CIBIL update, guarantor discharge.
SBI Stressed Assets Management (SAM) branches handle NPA cases above ₹5 Cr; sub-₹5 Cr stays with the originating branch under AGM (SAM) supervision. Empanelled zone-wise recovery agents handle field engagement — but no OTS commitment from an agent is binding unless it comes on SBI letterhead.
SBI initiates SARFAESI 13(2) typically 90–180 days into NPA classification. The 60-day reply window under Section 13(3A) is your most valuable procedural asset: a well-structured OTS proposal filed inside this window, addressed to the AGM (SAM), almost always freezes further escalation while the committee reviews.
Once SBI moves to 13(4) possession, the practical negotiation shifts. The Bank now has physical or symbolic possession and the RVS number becomes the floor for any conversation. e-Auction listings can be stayed by a filed OTS proposal at committee review, but not for long — cases that miss the pre-auction window typically settle at 55–75% waivers against a 60–80% pre-13(4) band.
Rough waiver band based on NPA stage. Actual outcome depends on bank, RVS, DPD and negotiation.
Quick 4-question check. Not a formal opinion.
Chennai-based auto ancillary with ₹8.4 Cr outstanding at SBI SAM Branch, Chennai Circle. Doubtful 2 vintage, secured by factory land + machinery. RVS working reconciled to ₹3.6 Cr; OTS sanctioned at ₹3.15 Cr (62.5% waiver) with 20% on sanction + 4 tranches over 6 months. Full closure with No Dues Certificate in 128 days.
Surat textile trader with ₹2.1 Cr working-capital NPA at origination branch under AGM (SAM), Ahmedabad Circle. Sub-standard classification, partial stock cover. OTS sanctioned at ₹1.05 Cr (50% waiver) with 15% down-payment and balance in 3 tranches over 4 months. Closed 96 days from filing.
Post-possession case at SBI SAM Branch, Pune. RVS ₹6.1 Cr against ₹14.2 Cr outstanding. OTS negotiated at ₹4.55 Cr (68% waiver), 25% on sanction and balance across 6 months. Auction stayed on filed proposal; sanction in 74 days from filing.
"Filed clean OTS with the right authority. Sanctioned in 4 months at 62% waiver."
"Timely SARFAESI reply and structured OTS saved the shop unit. Closed with No Dues in 5 months."
"Post-13(4) proposal filed with SAM branch — auction stayed and settled at 68% waiver."
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