NON PERFORMING ASSETS

NON PERFORMING ASSETS


Introduction of the concepts of Asset Classification, Income Recognition and Provisioning has become a significant tool, to gauge the health of the banking industry. One of the important parameters to measure the strength of the bank is its NPA coverage ratio. For reduction of NPA, the Bank has adopted the following action plan.



a) The Bank has introduced recovery policy, with flexible terms for recovery wherein various peps have been given by way of Modular Approach. Adequate powers have been vested at various levels for speedy disposal of the proposals. The recovery policy of the Bank as over and above the OTS scheme introduced by RBI.


b) “Road Show” is one of the unique way introduced by the bank for recovery wherein staff members of the branch for a “Recovery Brigade” and make a silent group presence in front of the business place and residence of the defaulting borrowers exhibiting placard for repayment of overdues. This Gandhian way of approach has got wide publicity in the print and electronic media and has created tremendous pressure on the defaulters.


c) Securitasiation and Reconstruction of Financial Assets and Enforcement of Security Act (SARFAESI) 2002 of the Government of India is an important tool for recovery without the cumbersome exercise of recovery proceedings through legal process, which has started yielding good results.


d) Health code system is introduced for identifying the weak account at the initial stage as HC-2 and remedial steps are taken for the upgradation. The Bank has already introduced 90 days delinquency norms w.e.f. Sept.2003.

hey i need a non performance asset project.. plz yaar help me.