In a move to provide relief, the government is aiming to double the NPA recovery to Rs 1.5 lakh crore in the current financial year 2018-19 as against Rs 74,000 crore in 2017-18. To achieve this, the government has asked the banks to match last full fiscal year recovery number by the end of second half.
The government has been trying its best to recover bad loans and has been insisting on a focused recovery drive, including a special team to deal with the issue. At the same time, the Insolvency and Bankruptcy Code is seen to be a key source to help the lenders recover some of the dues. Besides, the government has made recovery of bad loans a primary criterion for issuing growth capital to banks.
Meanwhile, public sector banks recovered around Rs 36,500 crore up to the June quarter and recovery is expected to reach Rs 75,000-80,000 crore by September-end.