TRENDS AND STRATEGIES IN NON-PERFORMING ASSETS RECOVERY IN COMMERCIAL BANKS

Abstract [English]

Non-Performing Assets (NPAs) have been a significant concern for commercial banks worldwide, impacting financial stability and economic growth. The literature on NPA recovery highlights various strategies and trends adopted by banks to manage and mitigate these assets.Undoubtfully banking and financial institutions play vital role in constructing the economy of the nation. More specifically, the banking sector in developing countries like India is playing a crucial role in shaping the economy. Indian Banking sector is performing extremely well post LPG era and introduction of the novel financial products have geared the exponential growth of this industry. It is inevitable that any fast growing sector has to experience its growth-related issues. The exponential growth of the Indian banking sector has paid its price for the same in the way to solve it the NPA. To address this issue, the present study has made an attempt to review the efforts taken by the banking authorities to address this issue and explore the best possible way to solve it. NPA is an issue which affects not only the banking sector but also to create obstacles in growth of the economy. "The money which is locked as NPA is not available for productive activities. It adversely affects the profit of the bank and as a result it increases the higher rate of their diligent credit customer."The key to NPA recovery lies in a mix of legal measures, digital interventions, structured settlements, and asset sales. Banks are focusing on preventive measures to reduce new NPAs while aggressively pursuing existing ones through structured legal and financial strategies.