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Thursday, November 21, 2013

RBI asks banks to fine-tune recovery, due diligence for NPAs


MUMBAI: In the wake of deteriorating asset quality in the banking system, which is hovering at record highs, the Reserve Bank today asked banks to strengthen their due diligence and improve the loan recovery process. 

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"Banks need to not only follow the various measures put in place by the RBI and the government effectively for resolution and recovery of bad loans but also to strengthen their due diligence, credit appraisal and post sanction loan monitoring systems to minimise and mitigate the problems of increasing non-performing assets (NPAs)," the RBI said in its 'Trends and progress of banking report 2012-13.'

Gross NPAs as per cent of gross advances for scheduled commercial banks stood at 3.6  ..
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"Banks need to not only follow the various measures put in place by the RBI and the government effectively for resolution and recovery of bad loans but also to strengthen their due diligence, credit appraisal and post sanction loan monitoring systems to minimise and mitigate the problems of increasing non-performing assets (NPAs)," the RBI said in its 'Trends and progress of banking report 2012-13.'

Gross NPAs as per cent of gross advances for scheduled commercial banks stood at 3.6  ..

MUMBAI: In the wake of deteriorating asset quality in the banking system, which is hovering at record highs, the Reserve Bank today asked banks to strengthen their due diligence and improve the loan recovery process.

"Banks need to not only follow the various measures put in place by the RBI and the government effectively for resolution and recovery of bad loans but also to strengthen their due diligence, credit appraisal and post sanction loan monitoring systems to minimise and mitig ..

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