In a recent statement releases from RBI through various channels like Indian bankruptcy code (IBC), SARFAESI Act, Lok Adalats and debt recovery tribunals, Banks are witnessing a significant improvement in stressed assets via recovery from various channels.
In the fiscal year ended march 2018 recovery of Rs. 40,400 crore worth of bad loans has been recovered by various banks under various channels, compared to previous year recovered Rs. 38,500 crore in Fy17, through the various channels like Indian bankruptcy code (IBC), SARFAESI Act, Lok Adalats and debt recovery tribunals.
Banks have recovered Rs. 26500 Crore Bad loans through SARFAESI and Rs. 4900 Crore of Bad loans through the IBC in FY18 In a yearly statement published by RBI annual report on trends and progress of banking in 2017-18.
“Apart from vigorous efforts by banks for speedier recovery, amending the SARFAESI Act to bring in a provision of three months’ imprisonment in case the borrower does not provide asset details and for the lender to get possession of the mortgaged property within 30 days, may have contributed to better recovery,” the highlighted report says.