State Bank of India (SBI) in association with over 30 banks, is planning to develop a common platform that will assist the public lender in data-driven price discovery.
The public sector lender along with other banks, asset reconstruction companies, and investors, will soon develop a blockchain based exchange for handling the menace of Non-Performing Assets (NPAs), as per Sudin Baraokar, Head Innovation, SBI.
With over $210 billion of NPAs, out of which $30 billion are there with SBI alone, a blockchain-based exchange will enable better solutions in data-driven price discovery. In addition to this, the bank has plans to unveil trade finance and loan exchange, said Baraokar.
This initiative is a next big information and technology-driven step for the bank, to be taken in collaboration with other banks, comprising of public sector, cooperative and foreign banks, and global IT brands.
In India, SBI was one among the early implementers of IT, core banking solution that has reported over two billion transactions a day, about 23,000 a second, with over 550 million accounts, he said.
