NPA Recovery & Revival Steps which can be adopted by the Banks

The Bank has to assess the exact reason for NPA.

The Bank should assess and grant the additional working capital requirement so that the borrower can restart its stuck business.

By compromise, negotiated deal, by reducing interest or by waiving penalty so for levied in the account of borrower

By converting a portion of Advance of funded term loan to enable the unit to generate income

Bank can allow operations in the account when the unit is in bad shape, but retain a small portion to enable it to service the interest and thus unit will not be classified as NPA.

Preventive and curative measures to be taken by Banks for containment of NPA

Proper credit appraisal

Identifying the weaknesses Of assets through early warning signals

Up-gradation of assets through various methods

Recovery of NPAs through compromise settlements, announcement of OTS