CURRENT AFFAIRS

Detailed explanation-1: -Karnataka Bank Ltd has launched the web tool – ‘Vasool So-Ft’ (Vasool So-Fast) – for digitalising the NPA (non-performing asset) recovery process of the bank.

Detailed explanation-2: -There are various avenues for recovery of Non Performing Asset (NPA), they are Insolvency and Bankruptcy Code, the SARFAESI Act, Asset Reconstruction, Debt Recovery Tribunals, Lok Adalats.

Detailed explanation-3: -Financial lenders can recover their losses by selling out the NPA or taking its possession. Banks and financial lenders can also sell of the loan on the NPA to any other bank to recover their losses.

Detailed explanation-4: -Nonperforming assets (NPAs) are recorded on a bank’s balance sheet after a prolonged period of non-payment by the borrower. NPAs place financial burden on the lender; a significant number of NPAs over a period of time may indicate to regulators that the financial fitness of the bank is in jeopardy.

Detailed explanation-5: -How can non-performing assets be reduced? The SARFAESI empowers banks to deal with NPAs, without the involvement of the court, through three alternatives. The other measures for reducing NPA’s are Debt Recovery Tribunals, Lok Adalats, Credit Information Bureau.