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Home Best Practices India Mukherjee tells DRTs to help expedite the process of NPA recovery

Mukherjee tells DRTs to help expedite the process of NPA recovery

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Finance Minister Pranab Mukherjee, while addressing a conference of  chairpersons of DRATs (debt recovery appellate tribunals) and presiding officers of DRTs (debt recovery tribunals) asked the chiefs suggest ways and means of expediting the release of bank resources locked up in the form of NPAs (non-performing assets).
 
Mr. Mukherjee pointed out that there could be no fresh lending unless there was recovery of earlier loans and, therefore, the problem of increasing NPAs of banks had to be addressed on a priority basis.
The government and RBI have advised banks to proactively keep a close check on NPA’s. Mr. Mukherjee said "The role of DRTs is all the more important in helping out the banks to deal with the mounting NPAs/loss assets as they are the part of mechanism for recovery of loss assets," he said.

Mr. Mukherjee urged the tribunal chiefs to come out with ‘concrete suggestions' to improve their functioning and help in speedier recovery of bank debts.
 
On the economic scenario in the country, he said that he had "full faith in the capacity and abilities of our people as well as in the resilience of the Indian economy to overcome successfully such challenges."
 
In the event of plummeting Gross Domestic Product (GDP) and soaring deficit, Mukherjee urged there was no need to press the panic button as he has full faith in the capacity and abilities of our people as well as in the resilience of the Indian economy to overcome successfully such challenges.
 
Highlighting the positive aspects of the economy, Mr. Mukherjee asserted that with strong basic fundamentals and high rate of domestic savings and investment, along with a reversal in the tight monetary policy, among others, taking the economy back to the path of higher growth, maintaining a moderate rate of inflation, narrowing the current account deficit and restricting the fiscal deficit to two per cent of GDP were much achievable.
 
On the contrary, the role of banks was such that they helped in minimising the impact on the economy. In such a scenario, the role of DRTs “is all the more important in helping out the banks to deal with mounting NPAs/loss assets,” as DRTs could ensure effective and speedy recovery of public money.
 
Keeping this important aspect in view, as per the relevant legislation on recovery of dues, the endeavour of tribunals should be to decide cases in 180 days, but the DRTs had not been able to adhere to this time line. Mr. Mukherjee said the pendency of cases in tribunals was about 67,000 cases, involving an amount of Rs. 1.36 lakh crore as on March 31, 2012. “This is a matter of great concern,” he said.



 

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