SARFAESI Act, 2002 was formulated to promote the establishment of Asset Reconstruction Companies (ARCs) and Asset Securitization Companies (ASCs) to deal with rising NPAs that the banking and financial institutions deal with. The Act provides three important tools or methods into asset management of banking and FIs for recovery of NPAs: Securitization of financial assets […]
Introduction Banking and financial institutions are the backbones of finance sector of an economy. The well being of such institutions is extremely important for the capital to flow into the economy as their two-way functionalities i.e. accepting deposits and lending. These are the channels for capital flow. However, clogging of these channels endanger the entities […]
What is Non-Performing Asset or NPA? Non-Performing Assets or NPA, as the name suggests, assets which are not performing. Loans given by the banks are assets for the banks. If the borrower who has taken a loan from a bank does not repay the principal amount and interest within the agreed time, then such loan […]