NON-PERFORMING ASSETS (NPAs)AND ITS RECOVERY MECHNAISM: A STUDY ON SCHEDULED COMMERCIAL BANKS IN INDIA

Abstract

NPAs are those loans and advances that cease to generate income for a bank. It plays crucial role in the performance and smooth operation of a bank. The objectives of the present paper are to study about the various methods and mechanism that are used to recover the NPAs in India and analyze about their ability to recover the NPAs of the scheduled commercial banks.It is found that there are four methods with the help of which NPAs are recovered by the scheduled commercial banks in India. Out of these four methods, the highest numbers of cases are solved through Lok Adalat methods and it involves the highest amount also. Nevertheless, Insolvency and Bankruptcy Code(IBC) and SARFAESI have shown the highest recovery rate in last 9 years.