Home / Current Issue / Paper 1705856
Efficiency of Recovery Channels in NPA Management: A Study of Banking Sector
Subject area: Management and Commerce · Area of research: Banking
Abstract
The Indian banking industry is the backbone of the nation's financial system and is essential to the efficient running of the economy. Even with the efforts to improve the banking industry's performance, Non-Performing Assets (NPA) continue to be a major obstacle. In response, the government has put in place a number of initiatives to reduce the stress caused by non-performing assets (NPAs), with a particular emphasis on NPA recovery channels. These channels?Lok Adalat, SARFAESI Act, Debt Recovery Tribunals (DRTs), and Insolvency and Bankruptcy Code (IBC)?are essential parts of the structure for recovery. In order to determine the relationship between NPAs and recovery methods in terms of the amounts collected compared to those involved in the schemes, the current study will analyses the amounts collected from each channel in an effort to clarify the effectiveness of these recovery channels. The study covers thirteen years, from 2009 to 2023, using secondary data that was obtained from multiple repositories. In addition to offering insightful perspectives to the continuing efforts to address NPA difficulties in the banking industry, this thorough analysis aims to shed light on the dynamics of NPA recovery channels.
Keywords
Non-Performing Asset (NPA), Lok Adalat, DRT, SARFAESI ACT, IBC.
References
[1] Karanth, S., & Prabu, R. (2024). Examining the Efficacy of the Insolvency and Bankruptcy Code: A Performance Analysis. The Management Accountant Journal, 59(4) 37-40.
[2] Kumar Sahoo, M., & Majhi, M. (2020). The Recovery Management System of NPAs - A case study of commercial banks in India. Parishodh Journal, 9(3), 5065–5075.
[3] Muazzam, R., & Singh, V. (2022). NPAs of commercial banks recovered through various channels. Social Science Research Network. https://doi.org/10.2139/ssrn.4152562
[4] Sharanraj. (2020). Financial Fraud: A Comparative Study of Banks fraud and Profitability. Iconic Research and Engineering Journals, 4(5), 63–66. IRE 1702530.
[5] Singh V R (2016) A Study of Non-Performing Assets of Commercial Banks and it’s recovery in India, Annual Research Journal of Symbiosis Centre for Management Studies, Pune Vol. 4, March 2016.
[6] Srinivas, K. T., & Karanth, S. (2021). A Study on Effectiveness of Recovery Channels for NPA Management. The Management Accountant Journal, 56(8), 94-97.
[7] Sumathy, M., & S Das, A. (2021). Recovery Channels of NPA In Scheduled Commercial Banks. International Journal of Business and Administration Research Review, 8(3), 103–108.
[8] www.rbi.org
How to cite this paper
@article{1705856,
author = {Dr. Srinivas K. T., Dr. Sharanraj, Shashidhar Channappa Chatni, Shrihari Karant},
title = {Efficiency of Recovery Channels in NPA Management: A Study of Banking Sector},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {7},
number = {11},
pages = {551-558},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1705856.pdf},
abstract = {The Indian banking industry is the backbone of the nation's financial system and is essential to the efficient running of the economy. Even with the efforts to improve the banking industry's performance, Non-Performing Assets (NPA) continue to be a major obstacle. In response, the government has put in place a number of initiatives to reduce the stress caused by non-performing assets (NPAs), with a particular emphasis on NPA recovery channels. These channels?Lok Adalat, SARFAESI Act, Debt Recovery Tribunals (DRTs), and Insolvency and Bankruptcy Code (IBC)?are essential parts of the structure for recovery. In order to determine the relationship between NPAs and recovery methods in terms of the amounts collected compared to those involved in the schemes, the current study will analyses the amounts collected from each channel in an effort to clarify the effectiveness of these recovery channels. The study covers thirteen years, from 2009 to 2023, using secondary data that was obtained from multiple repositories. In addition to offering insightful perspectives to the continuing efforts to address NPA difficulties in the banking industry, this thorough analysis aims to shed light on the dynamics of NPA recovery channels.},
keywords = {Non-Performing Asset (NPA), Lok Adalat, DRT, SARFAESI ACT, IBC.},
month = {May},
}