Strategies And Outcomes In Npa Recovery: Insights From Indian Scheduled Commercial Banks

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Published: Dec 25, 2023
DOI: https://doi.org/10.53555/jrtdd.v6i10s(2).2886
Keywords:
NPA Recovery Debt Recovery Tribunals IBC SARFAESI Lok Adalat

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Hendry Ruban
Dr. S.V. Murugesan

Abstract

Non-Performing Assets (NPAs) present a critical challenge for Indian Scheduled Commercial Banks by diminishing profitability, liquidity, and financial health, necessitating substantial provisions. While some NPAs are unavoidable due to diverse factors, banks can minimize their occurrence through vigilant pre-sanction and post-sanction monitoring, strategic precautions, and effective recovery strategies such as rehabilitation, rephasing loan installments, and compromise settlements like One Time Settlements (OTS) and Out of Court Settlements (OCS). Legal frameworks, including Lok Adalat, Debt Recovery Tribunals (DRT), SARFAESI Act, and the Insolvency and Bankruptcy Code (IBC), have significantly evolved, providing structured and expedited recovery processes. This empirical study evaluates the effectiveness of current NPA recovery mechanisms, assesses the impact of legal and regulatory frameworks, and suggests improvements to bolster the resilience and efficiency of the Indian banking sector.

Article Details

How to Cite
Hendry Ruban, & Dr. S.V. Murugesan. (2023). Strategies And Outcomes In Npa Recovery: Insights From Indian Scheduled Commercial Banks. Journal for ReAttach Therapy and Developmental Diversities, 6(10s(2), 2253–2260. https://doi.org/10.53555/jrtdd.v6i10s(2).2886
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Vol. 6 No. 10s(2) (2023)
Section
Articles
Author Biographies

Hendry Ruban

Research Scholar, Department of Commerce, Annamalai University, Chidambaram.

Dr. S.V. Murugesan

Associate Professor, Department of Commerce, Annamalai University, Chidambaram

References

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