A Study On Effectiveness Of Recovery Channels For The Recovery Of Npas: A Case Study On Scheduled Commercial Banks In India

Non-performing assets are those which are not generating income for the banks. It affects the profitability, liquidity and competitiveness of the banks. The impact is not only on the bank, it effects the whole economy as well . The banks should stop it at the time of credit appraisal rather than try to recover it after it becomes NPAs. There are many recovery channels through which the banks recover NPAs, such as DRTs, Lok Adalats SARFAESI Act. In this paper the effectiveness of DRTs, Lok Adalats SARFAESI Act in the recovery of NPAs during the year 2006 to 2015 has been evaluated. For the research financial statistical tool, correlation, regression has been used to explain the relationship between amount of NPA and its recovery.