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NPA A VISIONLESS APPROACH BY BANKS N GOVT ?

Posted Date: 28-09-2017 Posted By: user

Best NPA consultant in India


The NPA (Non Performing Assets) is a loan or advance given by the bank for which the interest or principal payment that remained overdue for a certain period. NPA (Non Performing Assets) is one of the most talked about topic and it is a major concern mainly for the banking industry. There have been a lot of measures taken and implemented in order to keep the control and reduce the increase in the number of the NPAs.

Carrying the non-performing assets on the balance sheet places a burden on lenders. The non-payment of the interest or principal amount reduces the cash flow, which can disturb the budget and decrease earnings of the lender. Also, to compensate the losses the banks may charge higher interest rates on some products. The NPA settlement challenging and it is a major problem for the banking sector. The rise in the NPA results from several factors that include-
 

  • Absence of adequate governance
  • Economic downturn
  • Absence for proper Resolution procedure and laws


The RBI (Reserve Bank of India) has restructured the standard provisioning and laid certain stringent regulations to control the further increase in the NPA in India. The financial industry professionals consider that these guidelines will to some extent will help manage help resolve the matters related to NPA effectively.

While the Banks and the Financial Institutions have been vested with the stringent powers for recovery of their dues the safeguard needs to be provided to the borrowers in order to protect their rights and wrongful use of such powers that vest the DRT with the authority. Apart for the large corporate, The SMEs are important for the economy. They not only help in generating employment but also are the major contributor to the economic growth. It is imperative to provide them support to help them flourish. When an SME falls to make payment and falls under the category of NPA the bank consider to resolve the matter in the fastest manner by going to the (DRT) Debt Recovery Tribunal and SARFAESI Act proceedings to recover the debt.

However, the banks must not take the undue advantage of such powers and take a visionless approach to deal with NPA. The unfair practice must not be encouraged and besides, they must follow a valid approach offering the borrowers a chance to reason as there are circumstances in business with leads to problems which cannot be resolved in a short duration of 90 days. A well considered complete opinion from professional might be of immense help in dealing with the complex NPA matters.

If there is any problem related to the NPA (Non Performing Assets) for any business then it is better to avail the service of a professional NPA consultant in India. These companies have the expertise and can help solve the intricate issues related to the NPA in a proficient manner. These companies have professionals who have vast experience in the financial industry and with their top-notch negotiation and expertise will help manage the NPA and will also add value to the business.

There are many companies that offer high-end solutions mainly related to NPA. These companies are committed to providing state-of-the-art solutions to our clients. They are backed by a team of professionals who are and seasoned financial professionals and experienced NPA Consultants having vast experience in the financial services. They are expert in the area of expertise and offer comprehensive solutions to their clients.

By browsing the web you may come across many companies offering the services in this area but only a few are competent to provide quality service and solutions. Therefore, before availing the service of any company randomly one must do a petite research and hire a reputed and experienced company.