123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Npa Recovery Can Solve The Biggest Problems Of Bad Loans

Profile Picture
By Author: NPA Consultant
Total Articles: 39
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

NPA management has been always a matter of concern. Every economist and financial expert has different views about recovery and account settlement. Why is it such an important issue?

Well, it is because a non-performing asset is not just bad for the financial institute or bank that issues the loan, but also for the economy. It has been observed that the recovery of the NPA has worsened in the past decade.

There was an estimate that the NPA rate will reduce as the economy will improve. However, the pandemic situation has impacted the economy badly. Hence, there is no scope of improving the NPA soon.

In this situation, rigorous efforts should be made to recover non-performing assets so that banks and financial institutes can improve their condition.

The introduction of the Insolvency and Bankruptcy Code has helped
Indeed, banks have been heavily relying on this code for the recovery and npa account settlement. Experts assume that banks will be able to release more than 25000 crores in the next five years. The overall NPA recovery rate will sustain at 33% or more, which is a healthy figure.

However, ...
... it is equally essential to strengthen the npa recovery process as well. Without that, the desired results will not be achieved.

The recovery tools can be Lok Adalat, legal proceeding under the SARFAESI act, and DRT (Debt Recovery Tribunal). Whatever method is used, the aim is to recover the amount as much as possible.

NPA recovery is important for the health of banks and financial institutes
Both NPA recovery and debt settlement are important for the right functioning and financial well-being of a bank. Unless the loan amount is not recovered, it cannot be reinvested. Thus, the circulation of money does not happen.

A npa consultant in india helps in speeding up the recovery process. By recovering the outstanding amount, a bank strengthens its working capital. It achieves higher efficiency and capitalizes on the net profit. It is the reason, npa in india is the most concerning issue today. It is not just about unrecovered money but has various dimensions to it.

Total Views: 32Word Count: 342See All articles From Author

Add Comment

Business Articles

1. Hot Air Oven Construction
Author: Tempo Instruments Pvt Ltd

2. Characteristics Of A Winning Bid
Author: Koby Corkill

3. Know More About Winchester Engineering
Author: winchesterengineering

4. Is It Illegal To Use A Gps Tracker?
Author: Alex Bender

5. Lip Balm Boxes & Lipstick Boxes
Author: Daniel Kamron

6. Increasing Demand For Better Quality Cosmetics And Healthcare Products Is Driving The Demand For Spe
Author: Robin White

7. Display Boxes – A Packaging For A Quick Boost In Sales Of Your Cbd
Author: Joseff Welsh

8. Building Automation System Market Is Expected To Grow At A Cagr Of 9%-11%
Author: Lucintel LLC

9. Best Astrologer In Basavanagudi | Famous Astrologer In Basavanagudi
Author: 9945656038

10. 3 Digital Pr Tools Essential During Pandemic Times
Author: Nilay Ankur

11. Iso 22000 Certification In Pretoria | Iso 22000 Consultants In Pretoria | Kwalitycert
Author: kwalitycert

12. Buy Custom Bakery Box Free In Multiple Designs & Huge Variety
Author: Andy Young

13. Web Designing Company In Bangalore| Brainbit Technologies
Author: Brainbit Technologies

14. Applications And Uses Of Condensate Pot
Author: Deepak

15. Do I Need Prescription Medications For Lower Back Pain?
Author: jaynehydukmedspa

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: