Public sector banks in India are divided over the debt resolution of Simbhaoli Sugars, with Punjab National Bank and Bank of India supporting a one-time settlement offer, while State Bank of India opposes it. SBI wants the promoters to improve their offer and provide commitments on payment timelines. If the offer is not sweetened, SBI may proceed with an insolvency lawsuit against the company. PNB and Bank of India argue that insolvency should be avoided to maximize proceeds for cane farmers. Simbhaoli Sugars has a debt burden of INR 1,436 crore, including interest and penalties.