SCHEME FOR ONE TIME SETTLEMENT OF DUES FOR

MICRO AND SMALL ENTERPRISES

State Bank of Hyderabad announces a non-discretionary and non-discriminatory one-time settlement of dues for Micro and Small Enterprises.

1. Eligibility: All Micro and Small Enterprises [Both Manufacturing and Services Enterprises] which are classified as Doubtful or Loss assets as on 31.03.2009 and outstanding amount up to Rs. 25.00 lacs.

2. Last Date for receipt of application: 31.12.2009.

3. Last Date for processing applications: 31.01.2010.

4. Last date for final payments: 31.03.2010.

5. Minimum amount of payment: 100% of outstanding balance in the eligible accounts as on the date on which the account was categorized as Doubtful / Loss as per IRAC norms.

6. Payment: Preferably in one lump sum. 5% amount to be paid along with the application. In case where the borrowers are unable to pay the entire amount in one lump sum, at least 25% of the settlement amount to be paid upfront within 30 days of sanction of OTS and remaining balance may be paid in not more than 6 installments, but not later than 31.03.2010.

The following cases are also eligible:

· Cases pending before Courts / DRTs / BIFR [Subject to consent decree being obtained from the courts /DRT / BIFR]

· Cases where notices have been issued under SARFAESI Act.

· Accounts referred to Revenue Recovery Action/

Cases not eligible:

· Decreed cases

· Cases of fraud, malfeasance and willful defaults.

· Central / State Government Guaranteed accounts.