KOTA KINABALU: The Sabah Development Bank (SDB) board has approved settlement proposals worth RM879 million, bringing the total recovery to over RM1 billion by the end of the year.
The bank remains optimistic about recovering the remaining non-performing loans (NPLs) within three years.
In a recent Sabah Assembly session, it was revealed that SDB currently holds RM5 billion in NPLs.
Following the appointment of a new board and management team in the second half of 2023, the bank launched aggressive legal measures targeting borrowers and guarantors involved in the NPLs.
These measures included appointing receivers and managers to oversee the recovery process.
In September 2023, SDB formed a dedicated recovery team to further expedite the efforts.
"The new team's approach has yielded positive results, with all NPL cases seeing some form of legal action," SDB said in a statement.
As a result of these actions, several borrowers have come forward with settlement proposals, cooperating with the bank to resolve their outstanding loans.
"SDB is bullish that this strong momentum will continue without fear or favor as the RM5 billion NPLs are secured against tangible assets," according to a statement.