What is current profile NPA asset recovery

Question

Accepted Answer

NPA asset recovery refers to the process of recovering non-performing assets of a bank or financial institution.

NPA asset recovery is a crucial process for banks and financial institutions to maintain their financial health.
It involves identifying and recovering loans that have become non-performing, i.e., the borrower has defaulted on repayment.
The recovery process can involve various methods such as restructuring the loan, selling the collateral, or taking legal action against the borrower.
The current profile of NPA asset recovery in India is challenging due to the economic slowdown and the impact of COVID-19 on businesses.
However, banks and financial institutions are adopting various measures to improve their recovery rates and reduce their NPAs.