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Non-Performing Assets of Scheduled Commercial Banks in India:Its Regulatory Frame Work


Affiliations
1 P.G. Department of commerce, Utkal University, Bhubaneswar-751004, Odisha, India
2 Mahendra Institute of Management and Technical Studies, Khordha-752055, India
3 Department of Commerce, Berhampur University, Brahmapur-760007, Odisha, India
 

Bank plays a vital role in the economic development and growth of a country. In a developing country like India, there is a need of efficient and healthy banking system. But from past few decades NPA has become a big threat for the growth of banking sector. In the present scenario, the core financial problem for banks is NPA. Proper recovery of loans can boost the performance of banks. Therefore, an attempt is made in this paper towards examining the effectiveness of NPA recovery measures. Selected recovery measures like Lok Adalat, Debt Recovery Tribunal and SARFAESI Act are taken to study the effectiveness of NPA recovery. From the study it is inferred that recovery of NPAs is still a measure concern for commercial banks in India. One of the reason for the poor recovery from NPAs is that, the mechanism created for this purpose are not effective that’s why banks are not able to derive full benefits from these.

Keywords

Economic Development, Non-Performing Assets, Recovery Measures, Lok Adalat, Debt Recovery Tribunal, SARFAESI Act.
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  • www.rbi.org.in.

  • www.iba.org.in.

  • https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications


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  • Non-Performing Assets of Scheduled Commercial Banks in India:Its Regulatory Frame Work

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Authors

Rabindra Kumar Swain
P.G. Department of commerce, Utkal University, Bhubaneswar-751004, Odisha, India
Muna Sahoo
Mahendra Institute of Management and Technical Studies, Khordha-752055, India
Anjali Prava Mishra
Department of Commerce, Berhampur University, Brahmapur-760007, Odisha, India

Abstract


Bank plays a vital role in the economic development and growth of a country. In a developing country like India, there is a need of efficient and healthy banking system. But from past few decades NPA has become a big threat for the growth of banking sector. In the present scenario, the core financial problem for banks is NPA. Proper recovery of loans can boost the performance of banks. Therefore, an attempt is made in this paper towards examining the effectiveness of NPA recovery measures. Selected recovery measures like Lok Adalat, Debt Recovery Tribunal and SARFAESI Act are taken to study the effectiveness of NPA recovery. From the study it is inferred that recovery of NPAs is still a measure concern for commercial banks in India. One of the reason for the poor recovery from NPAs is that, the mechanism created for this purpose are not effective that’s why banks are not able to derive full benefits from these.

Keywords


Economic Development, Non-Performing Assets, Recovery Measures, Lok Adalat, Debt Recovery Tribunal, SARFAESI Act.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2017%2Fv13%2Fi2%2F164529