Shouldn’t NPA recovery begin with big fish?

GN Bureau | June 18, 2012



The finance ministry is rightly concerned about the burden of non-performing assets (NPAs) of the public sector banks. To speed up the recovery, the ministry has asked these banks to be pro-active: send three SMSes, followed by one phone call as reminders and then send recovery agents to the defaulter’s home, reports the Economic Times. Of course, the loans must be recovered and there is no argument against this innovative methodology, but shouldn’t the banks focus on big-ticket recoveries rather than waste resources in coming to retail customers? After all, sending a recovery agent to one of the industry tycoons like Vijay Mallya will be enough to recover more than all retail loan-takers put together.

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