Bank defaulters making amends with increasing pressure

Views: 17

New Delhi, Mar 4 (ANI): With increasing pressure on banks for recovery of non-performing assets, defaulters, especially those in the ‘willful defaulters’ category are making serious efforts in utilizing loan for the rightful purpose, senior banker and Co-Chairman of the ASSOCHAM National Council on Banking and Finance R K Gupta said.

“Banks on their part have also started carrying out proper due diligence, robust credit appraisal and monitoring system to avoid any further slippages. It should be kept in mind that the huge slippages leading to higher provisioning will add to the bottom line of the Banks whenever these NPAs are recovered,” said Gupta.

He said phasing out of regulatory forbearance with necessitated capital requirement of banks has been a welcome move.

“RBI and the government have laid mounting emphasis on absolute objectivity and greater transparency in asset classification and provisioning in consonance with recoverability, realization probability,” added Gupta.

ALSO READ:   Facebook making ad metrics clearer on its platforms

The stringent measures of close monitoring through early warning signals, timely corrective actions, prompt resolution responses, matching concurrent sacrifices, instant provisioning and unlocking of impaired assets in time will impart sound grounds for healthy banking in India.

“A string of strong proactive actions will definitely go a long way in strengthening of banks in general and PSBs in particular,” added Gupta.

He said synchronized wavelengths between the government and RBI are beaming rays of hope for distinct intended improvement on paramount parameters of operating economy in not too distant future. Salvaging, retaining and improving the economic value of the stressed assets remain the hallmark of swift measures put in place by RBI.

RBI has been keen to revisit the effectiveness of measures from time to time. Be it regulatory forbearance in the form of CDR or SDR, be it preventive CRILC or remedial sale of assets mechanism, all promising symptoms of emerging sound economy. (ANI)

ALSO READ:   Tata Motors launches special edition 'Zest Premio'

Comments: 0

Your email address will not be published. Required fields are marked with *