Recovery Management in Banks and Financial Institutions with focus on Case Studies of NCLT
(16.12.19 to 20.12.19)

The challenges of the banking sector on Stressed Assets continue to cause concern.  Banks are working towards a turnaround in asset quality management.  The Financial stability Report released in Reserve Bank of India in June, 2019, revealed that the asset quality of banks has shown an improvement, with the Gross Non Performing Assets (GNPA) ratio of scheduled commercial banks declining from 11.5% in March, 2018 to 9.3% in March, 2019.  GNPA is expected to further decline to 9.0% in March, 2020.


The decline in GNPA after many quarters of alarming growth in NPAs is positive development in banking industry.  Recent regulatory changes are touted to have brought in better discipline in credit assessments, provisioning and management of operational risk.  Fresh slippages have also shown a declining trend, however, NPAs are still at high perch.  It will put further stress on banks’ capabilities of fresh quality lending, if stressed assets are not handled effectively.


Thus focus of banks has shifted to resolution of stress and control of further slippages. More efforts are required at all the levels in recovery/resolution. It is of therefore essential that officers engaged in NPA management have knowledge of the subject that is fast changing and are well conversant with the various tools available to manage NPA portfolio.


Considering the changed priorities of banks, NIBSCOM shall be conducting programme titled “Recovery Management in Banks & Financial Institutions with focus on Case studies of NCLTs”, which shall be useful for the human resources engaged or likely to be involved in NPA management. Focus of programme shall be on use of various recovery and resolution tools so as to bring down the level of NPA & stressed assets in absolute terms and in proportion to overall credit folio.


Programme Contents:


  • Causes of stress & Non-Performing Assets- Adverse effects on banks profitability and Challenges to meet capital adequacy requirements in changed environment

  • Supervision & Follow up of advances with focus on SMA and Stressed Assets, Latest RBI guidelines on resolution of stressed assets,

  • Insolvency & Bankruptcy Code, CIRP & Liquidation including voluntary liquidation with case studies on decided matters

  • Credit risk management in banks- Strategies and action plan for reducing NPAs-How to improve the quality of assets

  • Credit Frauds & Preventive vigilance during pre-sanction appraisal/assessment stages and post sanction stages

  • Recovery by banks through DRTs/Lok Adalats

  • Negotiation skills for recovery management, Compromises & OTS

  • Sale of NPA & Enforcement of securities under SARFAESI Act 2002

  • How to distinguish between wilful defaulters & others