As many as 11 banks have recovered nearly Rs 61,000 crore by way of one-time settlement in nearly four financial years, the government informed Parliament on Monday. The figures are for the last three financial years and up to December 2021 of the current fiscal.
As per instructions of the Reserve Bank, banks are required to have a board-approved loan recovery policy, which may cover negotiated settlements through compromise, including one-time settlement (OTS) under which recovery in non-performing assets (NPA) loan accounts are to be effected to the maximum extent possible at minimum expense, Minister of State for Finance Bhagwat Karad said in a written a reply to the Lok Sabha.
He said the intent of such measures is to help banks promptly recycle their funds with advantage.