Experience Financial Consultants in Mumbai
The stability in the banking Industry is imperative for the economy. One of the major problems that defy the stability of the banking system is the Non Performing Assets (NPAs). There has a lot of progression seen in the banking system but the NPA settlement remains the biggest challenges. The NPA is a loan or advance for which the payment has not been made for a period of 90 days.
It is a biggest risk to the banks when their customers stop making payments that badly affects the banks account books and reduce the cash flow for lenders which result to potential loss in their income, affects competitive position of the bank, result to increase in the interest rates, and as well reduce the available capital to provide subsequent loans to other customers.
With the increase in the levels of the non performing assets in the financial sectors, there are certain stringent rules and regulations laid down by the governing authority to have a control over the increase in the number of NPA in India.
The DRT (Debt Recovery Tribunals) and SARFAESI Act helps the banks and financial institutions to recover the dues after issuing the notice to the borrowers who fail to repay the interest or principal amount and appoint a person to manage the NPA concern.
However, there have been certain controversies related to the NPA recovery where banks have been alleged to be engaged in coercive practice for recovery. However, with the restructures provisions and regulations it has made the banks to reduce the chances of increase in NPA and recover the money from borrowers in a longer time period.
The SMEs are one of the major contributors to the growth of the Indian Economy. In case an SME falls under the category of NPA then the banks directly opt to recover the amount through the DRT or SARFAESI where the borrower may not be in a position to get any relief from the debt recovery. Sometimes the businesses face the problems that can be cured within a short span of time. However, there some business circumstances that affect the business efficiency and need more time for recovery and get the business back on the track. However, if the SMEs are not supported then it will kill them which ultimately will have the impact on the SMEs productivity levels and also will kill the employment opportunities. Taking a visionless approach towards NPA will hamper the SME industry growth. Therefore, there is the need to find the robust solution for dealing with the situation and giving a fair chance to help then stand the SMEs stand again and contribute to the economic growth.
There are many companies offer their services that make the every aspect of the NPA simple and help resolve the issues related to the NPAs effectively. These companies have proficient financial consultants in Mumbai who have vast experience in the finance industry and are aware of the dealing with the intricate NPA matters in a proficient manner. They analyze each and every aspect thoroughly and offer high-end solutions to help deal with NPA. They offer solutions by strictly following the regulations and also help in recovering NPA in a rightful manner.
By searching the web one can find many companies but there are only a few companies capable to provide reliable service. For that reason, before hiring any company randomly it is crucial to do a little research and hire an experienced company that has relevant experience in the industry and offers quality solutions.