RRBs – NPA Management – Requirement of an Effective Mechanism and Granular Data

The asset quality of banks is one of the most important indicators of their financial health. It also reflects the efficacy of banks’ credit risk management and the recovery environment. It is important that the signs of distress in all stressed accounts are detected early and those which are viable are also extended restructuring facilities expeditiously to preserve their economic value. During annual financial inspection (AFIs), it has been observed that the restructuring facilities are not readily extended to small accounts. To improve the banks’ ability to manage their non-performing assets (NPAs) and restructured accounts in an ffective manner and considering that almost all branches of banks have been
fully computerised.

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