Banks are likely to become more selective in accepting land and buildings as part of bad-loan settlements after the Reserve Bank of India (RBI) tightened governance, valuation and disposal norms for specified non-financial assets (SNFAs). SNFAs include residential and commercial properties, industrial land, warehouses, among others. “The guidelines indirectly propose that banks focus on their core business operations and impose restrictions and guidelines on transactions in immovable assets in satisfaction of claims on borrowers,” said Biby Augustine, joint general manager and head, collection and recovery, South Indian Bank.