Online published on 4 July, 2012.
Currently, banks are witnessing a steep rise in Non- Performing Advances (NPAs) with slow down in the economy, high lending rates and inadequate success in restructured advances. During the current fiscal, the level of NPAs will continue. To remain high with euro-zone crisis and its impact on Indian economy. Consequently, banks will have to make provisions for NPAs at much higher level. Further; Reserve Bank of India (RBI) has been introducing stricter provisioning norms for NPAs as a precautionary measure. Consequently, bank profitability is under stress. In this backdrop, the paper tries to analyze the nature and extent of provisions and searches effectives strategies for loan recovery and arresting slippage in the quality of loan assets by referring to regulatory aspects of RBI with special reference to provisioning and bank practices relating to loan recovery and credit monitoring.
Corporate debt restructuring, Classification of loan assets - Standard, Substandard, doubtful and loss assets, Credit monitoring, Debtor-credit agreement, DRT, DRAT, DCCO, Inter creditors agreement, Floating and additional provisions, Gross and Net NPAs, Lokadalats, One time settlement, Recovery certificate, SARFAESI Act
