How can we reduce the NPAs of bank?

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How can we reduce the NPAs of bank?

Ways to Reduce NPAs

  1. SARFAESI ACT, 2002. The SARFAESI empowers banks to deal with NPAs, without the involvement of court, through three alternatives:
  2. Debt Recovery Tribunals.
  3. Lok Adalats.
  4. Compromise Settlement.
  5. Credit Information Bureau.

What are the various steps taken to tackle NPAs?

What are the various steps taken to tackle NPAs?

  • The Debt Recovery Tribunals (DRTs) – 1993.
  • Credit Information Bureau – 2000.
  • Lok Adalats – 2001.
  • Compromise Settlement – 2001.

How are NPAs recovered?

Non-performing assets (NPAs) recovered by scheduled commercial banks through the Insolvency and Bankruptcy Code (IBC) channel increased to about 61 per cent of the total amount recovered through various channels in 2019-20 against 56 per cent in 2018-19, according to latest Reserve Bank of India (RBI) data.

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How can we stop NPA?

For NPAs to be prevented, information gathering should improve. Field inputs by bank branches need harder look

  1. Credit impact. The increased risk weights for exceeding the permissible limits may prove a big burden for both borrowers and bankers.
  2. Management of loans.
  3. Limits of digitalised process.
  4. Ninety day limit.

Which bank has highest NPA 2020?

Among PSBs, State Bank of India (SBI) which accounts for the highest share at around 20\% of the gross NPAs of state-owned banks in Q3 FY21, reported the highest asset quality improvement, with a decline in bad loan to 4.8\%, followed by Punjab National Bank (PNB) accounting for around 16\% share which also posted lower …

What are bad banks Upsc?

About: The bad bank is an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time.

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