RECOVERY - Banking Management

[SURYANARAYAN MOHAPATRA]

Dear Students,

We will discuss more on Recovery .   Note the following.

What measures do banks take for Recovery ?

ANS :

The recovery steps can be classified as under.

1)  LEGAL

2)  Non- Legal

Non-Legal

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a) Reminder to the borrower 

b) Visiting the borrower's place / his unit

c) Arranging Recovery camp

d) Rehabilitation of the unit if there is genuine problem 

e) Debt restructuring - genuine problem with the unit/activity like cash flow problem

f) Compromise Settlement

g) Rephasement /Rescheduling   :  in case of small activities, genuine problem like failure due to natural calamities

h) Write off of the loan - if there is no chance of recovery and filing of suite is also not help.

i) Engaging Recovery agents - if it is difficult by the bank staff

Legal 

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a) DRT

b) Lokadalat

c) Securitization :  enforcement  ,  selling to  Assets Reconstruction Company

d) Filing of suit

 With best wishes.

 Prof.  Surya Mohapatra