As much as Rs61,000 crore has been recovered by somewhat 11 banks through one-time settlement mode in nearly four financial years. The government intimated the information to Parliament today.
In a written reply to Lok Sabha, Minister of State for Finance Bhagwat Karad mentioned RBI's instructions where 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.
These measures are to support banks promptly in recycling their funds with advantage, Karad added.
Further, Karad said that all nationalised banks have a board-approved loan recovery policy in place.
Karad pointed out that input received from the 11 nationalised banks, showed, a one-time settlement was approved in 38,23,432 cases during the last three financial years. Furthermore, an aggregate amount of ₹60,940 crore has been recovered through OTS by these nationalised banks from the last three financial years till December 2021 quarter (Q3FY22).
Data given by Karad revealed that, among the total 11 banks, state-owned Punjab National Bank registered the highest number of OTS of 8.87 lakh, followed by Bank of India with 4.97 lakh; Bank of Baroda with 4.34 lakh; Indian Bank with 4.27 lakh; Canara Bank at 4.18 lakh; and Central Bank of India at 4.02 lakh.
Other banks were - Union Bank of India with 2.99 lakh OTS; UCO Bank with 2.38 lakh; Indian Overseas Bank with 1.33 lakh; Bank of Maharashtra with 63,202 and Punjab & Sind Bank with 20,607.
