The Indian banking system faces a problem of huge number of Non-Performing Assets on the bank’s balance sheet. To ensure proper functioning of the banking system in the economy, we need to see that the level of NPAs is kept down. Banks were never so serious in their efforts to ensure timely recovery and consequent reduction of Non-Performing Assets as they are today. It is important to remember that recovery management, be of fresh loans or old loans, is central to NPAs management. Banking in India faces the difficulty of mounting Non- Performing Assets, which is unfavorable for the bank’s financial health. Banks have had to wait for very long time in Civil Courts to get cases concerning debt-recovery disposed and recovered. This led to the trapping of crores of rupees in litigation proceedings, which the bank could not re-advance, forcing the Government to establish a Debt Recovery Tribunal (DRT) to assure expeditious recovery proceedings and speedy adjudication of matters concerning debt recovery of banks. This research paper deals with the study of Recovery of NPAs in Public and Private sector Banks.
Cite this article:
Neeraj Kumar Saddy, Harpreet Kaur. Recovery Management of Non-Performing Assets of Public and Private Sector Banks. Asian J. Management 4(4): October –December, 2013 page 293-296.