IILM GSM (BATCH: 2011-13)



Abstract NPAs exhibit a virus effect on banks and affect liquidity, profitability and performance of banks. At macro level, NPA affect stability of banking and leads to financial shocks in economy. The post-liberalization period saw remarkable changes in Indian banking sector, deliberated to improve efficiency and to align Indian banking with international standards. The research evaluates the management of NPA and explains the effectiveness of recovery management measures in Indian Scheduled Commercial Banks (SCBs), in particular SARFAESI Act during 2003-04 to 2010-11.In addition to descriptive statistical tools, correlation and regression study is undertaken to evaluate and explain relationship between incidence of NPA and its recovery of NPAs. The empirical results showed improvement in recovery of NPA contributed mainly by SARFAESI Act and DRTs during the period. It may be observed from the study that SARFAESI Act provided much needed momentum to recovery management.

Introduction With an aim to provide a structured platform to the Banking sector for managing its mounting NPA stocks and keep pace with international financial institutions, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was put in place to allow banks and FIs to take possession of securities and sell them. As stated in the Act, it has “enabled banks and FIs to realise long-term assets, manage problems of liquidity, asset-liability mismatches and improve recovery by taking possession of securities, sell them and reduce non performing assets (NPAs) by adopting measures for recovery or reconstruction.” Prior to the Act, the legal framework relating to commercial transactions lagged behind the rapidly changing commercial practices and financial sector reforms, which led to slow recovery of defaulting loans and mounting levels of NPAs of banks and financial institutions. The SARFAESI Act has been largely perceived as facilitating asset recovery and reconstruction. Since Independence, the Government has adopted several ad-hoc measures to tackle sickness among financial institutions, foremost through nationalisation of banks and relief measures. Over the course of time, the

The committee suggested the need for special legislation for speedy revival of sick units or winding up of unviable ones and setting up of quasi-judicial body namely. the SICA came into existence and BIFR started functioning from 1987. Board for Industrial and Financial Reconstruction (BIFR) and The Appellate Authority for Industrial and Financial Reconstruction (AAIRFR) and their benches. Different committees set up to look into this. It was to suggest a comprehensive legislation to deal with the problem of industrial sickness. and the stringent requirements rendered the attachment and foreclosure of the assets given as security for the loan as ineffective. the Tiwari committee was set up by the Government. Some of the notable measures in this regard include:  Sick Industrial Companies (Special Provisions) Act. Thus in 1985. However. the BIFR SARFAESI ACT 2002: An Assessment process was cumbersome and unmanageable to some extent. The need for a speedy recovery mechanism through which dues to the banks and financial institutions could be realised was felt. 1993: The procedure for recovery of debts to the banks and financial institutions resulted in significant portions of funds getting locked. For the effective and speedy recovery of bad loans. Measures adopted included legal. suggested formation of Special Tribunals for recovery of overdue debts of the banks and financial institutions by following a summary procedure. The system was not favourable for the banking sector as it provided a sort of shield to the defaulting companies.  Recoveries of Debts due to Banks and Financial Institutions (RDDBFI) Act. this act also could not speed up the recovery of bad loans. However. The objective of SICA was to proactively determine or identify the sick/potentially sick companies and enforcement of preventive.Government has put in place various mechanisms for cleaning the banking system from the menace of NPAs and revival of a healthy financial and banking sector. the RDDBFI Act was passed suggesting a special Debt Recovery Tribunal to be set up for the recovery of NPA. 1985 or SICA: To examine and recommend remedy for high industrial sickness in the eighties. . remedial or other measures with respect to these companies. financial restructuring as well as management overhaul.

the system aimed at preserving viable corporate/businesses that are impacted by certain internal and external factors. timely support through restructuring in genuine cases was required. For the revival of such businesses. In particular. Although CDR has been effective. as well as. it largely takes care of the interest of bankers and ignores (to some extent) the . thus minimising the losses to the creditors and other stakeholders. Corporate Debt Restructuring (CDR) System: Companies sometimes are found to be in financial troubles for factors beyond their control and also due to certain internal reasons. DRT and other legal proceedings. The system has addressed the problems due to the rise of NPAs. which are outside the purview of BIFR. a CDR system was established with the objective to ensure timely and transparent restructuring of corporate debts of viable entities facing problems. With this view. for the security of the funds lent by the banks and FIs.

and empowering banks and FIs to take possession of the securities and sell them without the intervention of the court and without allowing borrowers to take shelter under provisions of SICA/BIFR. These committees suggested a new legislation for securitisation. The secured lenders like banks and FIs. The banks do not go for a one time large write-off of loans in initial stages. facilitate securitisation of financial assets of banks.  SARFAESI ACT 2002: By the late 1990s. The act envisaged the formation of asset reconstruction companies (ARCs)/ Securitisation Companies (SCs). Acting on these suggestions. the SARFAESI Act. out of investments made by a QIB and ensure that realisations of such financial asset is held and applied towards redemption of investments and payment of returns assured on such investments under the relevant scheme. The Act provides three alternative methods for recovery of NPAs. A securitisation company or reconstruction company may raise funds from the QIBs by forming schemes for acquiring financial assets. empower SCs/ARCs to raise funds by issuing security receipts to qualified institutional buyers (QIBs). namely:  Securitisation: It means issue of security by raising of receipts or funds by SCs/ARCs. The SC/ARC shall keep and maintain separate and distinct accounts in respect of each such scheme for every financial asset acquired. was passed in 2002 to legalise securitisation and reconstruction of financial assets and enforcement of security interest. Provisions of the SARFAESI Act The Act has made provisions for registration and regulation of securitisation companies or reconstruction companies by the RBI. rising level of Bank NPAs raised concerns and Committees like the Narasimham Committee II and Andhyarujina Committee which were constituted for examining banking sector reforms considered the need for changes in the legal system to address the issue of NPAs. through CDR merely. empowering banks and FIs to take possession of securities given for financial assistance and sell or lease the same to take over management in the event of default.interests of borrower’s stakeholders. Asset Reconstruction: The SCs/ARCs for the purpose of asset reconstruction should provide for any one or more of the following measures:  . address the financial structure of the company by deferring the loan repayment and aligning interest rate payments to suit company’s cash flows.

the management of the business of the borrower • the sale or lease of a part or whole of the business of the borrower • rescheduling of payment of debts payable by the borrower • enforcement of security interest in accordance with the provisions of this Act • settlement of dues payable by the borrower • taking possession of secured assets in accordance with the provisions of this Act. without raising a financial liability for itself.• the proper management of the business of the borrower. Defining NPAs: Non-performing Asset (NPA) means an asset for which: . assigning. by change in. limiting or extinguishing any right. for enforcement of security without Court intervention: (a) any security receipt issued by the SC or ARC. 2002. 1908. shall not require compulsory registration.  Exemption from registration of security receipt: The Act also provides. under section 7 of the Act. The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions. or take over of. act as receiver if appointed by any court or tribunal. as the case may be. acquisition of financial assets and related matters under the powers conferred by the SARFAESI Act. measures of ARCs. prudential norms. The Guidelines for SCs/ARCs registered with the RBI are:    act as an agent for any bank or FI for the purpose of recovering their dues from the borrower on payment of such fees or charges act as a manager between the parties. title or interest to or in immovable property except in so far as it entitles the holder of the security receipt to an undivided interest afforded by a registered instrument. functions of the company. declaring. and not creating. 2003 The Reserve Bank of India issued guidelines and directions relating to registration. Apart from above functions any SC/ARC cannot commence or carryout other business without the prior approval of RBI. notwithstanding anything contained in the Registration Act. or (b) any transfer of security receipts.

which has obtained a certificate of registration issued by RBI can undertake both securitisation and asset reconstruction activities. shall have a minimum Owned Fund of Rs 20 mn. on default by the borrower. A Securitisation Company or Reconstruction Company. interest or principal (or instalment) is overdue for a period of 180 days or more from the date fixed for receipt thereof in the plan formulated for realisation of the assets interest or principal (or instalment) is overdue on expiry of the planning period. reserves and surplus excluding revaluation reserve. classify an asset as a NPA even earlier than the period mentioned above. if it is overdue for a period of 180 days or more in the books of the SC or ARC. Permissible Business: A Securitisation Company or Reconstruction Company shall commence/undertake only the securitisation and asset reconstruction activities and the functions provided for in Section 10 of the SARFAESI Act. Registration:    Every SC or ARC shall apply for registration and obtain a certificate of registration from the RBI as provided in SARFAESI Act. as reduced by debit balance on P&L account. miscellaneous expenditure (to the extent not written off ). diminution in value of investments/short provision against NPA and further reduced by shares acquired in SC/ARC and deductions due to auditor qualifications. intangible assets. This is also called Owned Fund. whichever is later. Every Securitisation Company or Reconstruction Company seeking the RBI’s registration under SARFAESI Act. . paid up preference capital. It cannot raise deposits.    Interest or principal (or instalment) is overdue for a period of 180 days or more from the date of acquisition or the due date as per contract between the borrower and the originator. Any entity not registered with RBI under SARFAESI Act may conduct the business of securitisation or asset reconstruction outside the purview of the Act. Net worth of Securitisation Company or Reconstruction Company: Net worth is aggregate of paid up equity capital. where no plan is formulated for realisation of the any other receivable. Provided that the Board of Directors of a SC or ARC may.

plan for realisation of asset acquired for reconstruction The Board has powers to approve policy changes and delegate powers to committee for taking decisions on policy/proposals on asset acquisition. there should be a policy for settlement of dues with borrowers. only if the sale is conducted through a public auction. either for its own use or for resale. profile and procedure for acquisition of assets. a SC/ARC may itself acquire the secured assets.Some broad guidelines pertaining to Asset Reconstruction are as follows:    Acquisition of Financial Assets: With the approval of its Board of Directors. enforcement of security interest. within 90 days of grant of Certificate of Registration. a ‘Financial Asset Acquisition Policy’. or change/takeover of management or sale/lease of a part or entire business. The plan should clearly define the steps for reconstruction of asset within a specified time. which could be reasonably estimated and independently valued. projected earnings/ cash flows of the borrower. Enforcement of Security Interest: For the sale of secured asset as specified under the SARFAESI Act. valuation procedure for assets having realisable value. every SC/ARC is required to frame. type. which should not exceed five years from the date of acquisition. Rescheduling of Debt/ Settlement of dues payable by borrower: A policy for rescheduling the debt of borrowers should be framed laying the broad parameters and with the approval of the Board of Directors. clearly laying down policies and guidelines which define the. . The proposals should to be in line with the acceptable business plan. but without affecting the asset liability management of the SC/ARC or commitments given to investors. Realisation Plan: Within the planning period a realisation plan should be formulated providing for one or more of the measures including settlement/rescheduling of the debts payable by borrower. Similarly. norms.     Change or take over of Management/ Sale or Lease of Business of the Borrower: No SC/ARC can takeover/ change the management of business of the borrower or sale/lease part/whole of the borrower’s business until the RBI issues necessary guidelines in this behalf.

The surplus available can be deployed in G-Sec or deposits in SCBs. Deployment of funds: The company can sponsor or partner a JV for another SC/ARC through investment in equity capital. for issuing security receipts to QIBs. Investor Appetite Demand for securities is restricted to short tenor papers and highest ratings. This can be attributed to the underdeveloped nature of the Indian market and poor awareness as regards the process of securitisation. . Also. For expanding the market for SR. The same definition is not legally inadequate in case of ‘Pay through Securities’ with different tranches. It does not include NBFC or other bodies unless specified by the Central Government as a financial institution (FI). The trusteeship remains with the company and a policy is formulated for issue of security receipts. Issues under the SARFAESI Right of Title A securitisation receipt (SR) gives its holder a right of title or interest in the financial assets included in securitisation. as specified under SARFAESI Act. it has remained restricted to senior tranches carrying highest ratings. while the junior tranches are retained by the originators as unrated pieces. The company shall also make provisions for NPAs. Thin Investor Base The SARFAESI Act has been structured to enable security receipts (SR) to be issued and held by Qualified Institutional Buyers (QIBs). In order to deepen the market for SR there is a need to include more buyer categories.Broad guidelines with regards to Securitisation are as follows:    Issue of security receipts: A SC/ARC can set up trust(s). This definition holds good for securitisation structures where the securities issued are referred to as ‘Pass through Securities’. Asset Classification: The assets of SC/ARC should be classified as Standard or NPAs. The company shall transfer the assets to the trust at a price at which the assets were acquired from the originator. there is a need for increasing the investor base.

Since the SPV is normally structured to have no other activity apart from the asset pool sold by the originator. A recent example of this is the sub-prime crisis in the US which is explained in detail in the following sections. there is a risk to the investor in the form of non-payment or imposition of additional taxes on the income repatriation. Legal Risk: Securitisation transactions hinge on a very important principle of “bankruptcy remoteness” of the SPV from the sponsor. In a declining interest rate regime prepayment poses an interest rate risk to the investors as they have to reinvest the proceedings . when interest rates go down. the credit risk principally lies with the underlying asset pool. Prepayments occur due to a change in the macroeconomic or competitive industry situation. A well diversified asset portfolio can significantly reduce the simultaneous occurrence of default. For example in case of residential mortgages. This risk can be mitigated by having a foreign guarantor or by structuring the SPV in an offshore location or have an neutral country of jurisdiction Collateral deterioration Risk: Sometimes the collateral against which credit is sanctioned to the obligor may undergo a severe deterioration. individuals may prefer to refinance their fixed rate mortgage at lower interest rates. Competitors offering better terms could also be a reason for prepayment. Sovereign Risk: In case of cross-border securitisation transactions where the assets and investors belong to different countries. A careful analysis of the underlying credit quality of the obligors and the correlation between the obligors needs to be carried out to ascertain the probability of default of the asset pool. When this coincides with a default by the obligor then there is a severe risk of non-payment to the investors. Structuring the asset transfer and the legal structure of the SPV are key points that determine if the SPV can uphold its right over the underlying assets. if the obligor declare bankruptcy or undergoes liquidation. Prepayment Risk: Payments made in excess of the scheduled principal payments are called prepayments.Risk Management in Securitisation The various risks involved in securitisation are given below: Credit Risk: The risk of non-payment of principal and/or interest to investors can be at two levels: SPV and the underlying assets.

This can be mitigated by structuring the tranches such that prepayments are used to pay off the principal and interest of short-term bonds. disseminating the same to investors and other administrative tasks. maintains statistics of payment. . keeping a tab on delinquency. The failure of the servicer in carrying out its function can seriously affect payments to the investors. Guarantor failure can adversely impact the stability of cash flows to the a lower interest rate. Financial Guarantor Risk: Sometime external credit protection in the form of insurance or guarantee is provided by an external agency. Swap Counterparty Risk: Some securitisation transactions are so structured wherein the floating rate payments of obligors are converted into fixed payments using swaps. This problem is more severe in case of investors holding long term bonds. Servicer Performance Risk: The servicer performs important tasks of collecting principal and interest. Failure on the part of the swap counterparty can affect the stability of cash flows of the investors.

(iii) entry barriers. various measures were initiated based on recommendations of Narasimham Committee (1991 and 1998) and Verma Committee. recession and willful default results in accumulation of NPA. . transparent accounting. business cycle and natural calamities. To revive Indian Banking and promote a viable and efficient banking in line with international standards. Caprio. Still. (ii) interest rate controls. and stricter capital adequacy norms based on the Basel Capital accord. D (1996) observed that the problem of NPAs arise either due to the bad management by banks or due to the external factor like unanticipated shocks. many of the reasons mentioned in previous researches still remains and includes Reddy. Financial liberalization covers various dimensions of financial sector that as noted by Shehzada and Haan (2008) includes measure relating to (i) credit controls and reserve requirements. (vi) prudential regulation and supervision of the banking sector. G and Klingebiel. Indian banking has improved significantly and regulatory authorities and banks initiated various measures to manage various causes of NPA. laxities in legal system. Nandy. and (vii) securities market policy. (iv) state ownership in the banking sector.Literature Review In Indian banking. D (2010) remarked that the measure of NPA helps to assess the efficiency in allocation of resources made by banks to productive sectors. (v) capital account restrictions. Research on NPA including Karunakar et al (2008) noted that apart from flaws in credit assessment of borrowers due to political economy considerations. which would operate in an environment of prudential regulation. Chipalkatti and Rishi (2006) noted that the banking reforms emerged from the recommendations proposed by the Narasimhan Committee Report (1991) advocated a move to a more market oriented banking system. accounting disclosure practices. the accumulation of NPA and its impact on profitability and asset quality received attention during 1990’s. PK (2002) who noted that the problem India faces is not lack of strict prudential norms but. The importance of a sound banking system and the role of NPA to create distress in banking system is discussed in many literatures. Financial Liberalization is considered as important requirement for financial sector growth.

which in turn is closely related with the effectiveness of legal measures available for NPA recovery. M (2005) observed that more essential step to resolve NPA problem is timeliness of measures as it would save the system from a greater damage. Banking which were completely preoccupied to satisfy the development priorities of government till 1991 showed signs of operational inefficiency. which was felt not only in Indian banking sector. Management of NPA accounts hence plays a vital role in bank’s stability and growth. Lok Adalats. It highlights the quality of loan assets. . One of the notable signs of operational inefficiency was the poor quality of assets and alarming level on NPA. provisioning. NPA indicate two major flaws in banking and economy. Sharma. but banking sector across the world. This necessitated the implementation of various prudential norms to improve the banking sector. Debt Recovery Tribunals (DRTs). The prevalence of NPA cannot be completely eliminated by adopting prudential norms and effective risk management practices. but it can be controlled through various proactive and reactive measures. asset-classification. The overhang component of NPA indicates the strength of recovery management measures of the bank. particularly the non-financial enterprise sector. globalization and privatization. Ghosh. etc. The additions to NPA component indicate the strength of credit risk management to a great extent.The reporting and NPA disclosure norms forced banks to strengthen their recovery management measures. SARFAESI Act etc. Higher additions to NPA thus indicate poor credit risk management of bank. S (2005) pointed out that the quality of loan portfolio of financial institutions is widely perceived to be directly dependent upon the financial health and profitability of the institut ions’ borrowers. obviating serious macroeconomic costs. NPA cannot be eliminated in banking. As rightly pointed out by Chaudhary and Sharma (2011) major changes took place in the functioning of Banks in India only after liberalization. the liquidity and performance of bank. The proactive measures includes effective risk assessment. credit evaluation and monitoring techniques while reactive measures includes various recovery measures that include Asset Reconstruction Companies (ARCs). Various measures and recovery mechanisms were initiated in Indian banking system in post-liberalization period. The Indian banking sector in post-liberalization period witnessed considered progress on management of NPA and incorporated prudential measures for income recognition.

e. SARFAESI Act. C (2004) observed that the SARFAESI Act facilitated the establishment of ARCs. M. Research Objectives This research investigates the trend in management of NPA with specific focus on three measures.P (2010) based on a review on recovery management practices emphasized that SARFAESI Act brought a greater change in the debt recovery scenario in India. Unny. namely: - Thus it may be observed that SARFAESI helped to toughen the banking sector and allows them to securitize recovery of NPAs. It provided three different methods for recovery of nonperforming assets. The study infers based on statistical information on recovery of NPA accounts using the above three measures during the period 2003-04 to 2010-11. without going through the stringent court procedure.SAREAEST facilitated securitization of financial assets of bank and FIs or power to take possession of securities and sell them. . Ahmed.U (2008) based on a study on NPA recovery management explained that among the various channels of recovery available to banks for dealing with bad loans.. the debt recovery tribunals and SARFAESI Act has been the most effective in terms of the amount recovered. The SARFAESI Act 2002 allows banks and other financial institutions to recover NPA accounts without the intervention of the Court.Pereira. once the loan account has been categorized as a Non-Performing Asset. J. In addition to the analysis of trend in recovery of NPA accounts. the study also focus on the relationship between various recovery measures and sector wise NPA during the mentioned period. i. The major change brought in by SARFAESI is that it allowed the banks to take over possession from the defaulter.

Data Analysis 4. totaling Rs. It refutes the earlier statements made by bankers that priority sector is the major contributor for NPA.26.517 crores.400 crores) is less compared to Small Scale sector (Average – Rs. 51% of total NPA arise from non-priority sector during the period. SARFAESI Act enabled highest recovery of NPA accounts.265 crores).339 crores). Total – Rs. It may be observed from the standard deviation of descriptive statistic that non-priority sector showed a higher standard deviation indicating a widely disbursed NPA trend during selected period.30. while recovery through DRT and Lok Adalat stands Rs. 1 showed descriptive statistics highlighting the movement of NPA during 2004-04 to 2010-11. Total – Rs. average annual growth rate (AAG).292 crores. Total – Rs.960 crores.9.3.1. This is addressed by enactment of SARFAESI Act.244. Recovery of NPA through DRT.9. During the study period.266. Priority sector includes agriculture.73.94.409 crores and Rs.301 crores and Rs. The statistic on sector wise NPA showed equal importance of both priority and non-priority sector in total NPA of SCBs in India.1 Descriptive Statistics – NPA Sector Wise (2003-04 to 2010-11) NPA emanate from various sectors.33.Methodology To achieve the stated objectives.4370 crores were recovered using SARFAESI Act.126 crores respectively.783 crores. the research utilized descriptive statistics. an average of Rs.76. Bankers in India often complained about the legal impediments for recovery of NPA accounts. Also. Total – Rs. A comparison between priority sector and non-priority sector NPA showed higher contribution of non-priority sector NPA (Average – Rs. as may be observed from the descriptive statistics. Total – Rs. Micro and Small Enterprises and Other priority sector. Lok Adalat and SARFAESI Act SARFAESI Act facilitated recovery of NPA accounts better than other modes of recovery. classified into priority sector. non-priority sector and public sector.11. During the study period.141 crores respectively. compared to priority sector NPA (Average – Rs.175 crores.472 crores) and other priority sector NPA (Average – Rs. it may be observed that the contribution of agriculture sector in total priority sector NPA (Average – Rs.34.137 crores) during the period. .559 crores. Table No. while DRT and Lok Adalat enabled recovery of Rs.

This might have resulted in more non-priority sector NPA in Indian SCBs. The post-liberalization period saw major reforms in banking sector that include relaxing norms for priority sector lending. It does not lead to inference that recovery of .37 (Recovery through SARFAESI Act. DRTs and Lok Adalats.Table No. 13.43% during the study period. except for the fact that there has been an increased growth of NPA since 2007 due to global financial crisis and due to the recessionary pressures. 3 that recovery of NPA account increased during study period indicated in higher annual average growth (AAG) rate of amount recovered. Debt Recovery Tribunals stood second with a total recovery of Rs.47. It may be observed from the correlation study and regression study that priority sector NPA is an important predictor to the movement of total recovery using SARFAESI Act.74. It may also be inferred that one of the significant reason for the slow pace of growth of NPA since 2003-04 is the effectiveness of recovery measures. This refutes earlier observation made by bankers regarding the significance of priority sector on total NPA of banks. The statistics showed that SARFAESI Act provided a more efficient tool for recovery management in Indian SCBs. Among the various recovery modes. Major Findings The descriptive statistics showed that non-priority sector contribute more NPA in total NPA of Indian SCBs in the study period.409 crores during the period. 2 summarize the descriptive statistic on NPA recovery through SARFAESI Act. the recovery of NPA accounts increased by 13. while small scale sector stand second reporting an AAG rate of 9. It is right to point out that SARFAESI Act contributed landmark change in NPA recovery management.26 (Recovery through DRT) and 49. Another major finding is the correlation between total priority sector NPA and recovery using SARFAESI Act.26. NPA (Sector wise) and Recovery (2003-04 to 2010-11) It may be observed from Table No.26 (recovery through Lok Adalat). Among the contributors of NPA. agriculture sector reported higher AAG rate of 15. Among the various recovery measures SARFAESI Act provided much needed momentum and eased the legal hurdles to recover NPA accounts. While total NPA grew by an AAG rate of 7. recovery using SARFAESI Act contributed significant change in management of NPAs in Indian banking sector.

Among the recovery measures. In specific terms.NPA in absolute amount increased at a faster rate than incidence of NPA. SARFAESI Act provided much needed momentum to improve the recovery measures. . A comparison of the average of ratio of recovery as a percentage of various NPA indicators highlighted the need to further enhance the recovery process. to grow and improve. Conclusion My attempt in this research to evaluate management of NPA in Indian SCBs focused mainly on the recovery management measures since 2003-04. to remain vibrant and viable in Indian economy. This trend is good for Indian banking sector that require strong and stringent measures to tackle the presence of NPA to maintain new standards. It may be observed from the growth rate of major recovery measures that it increased at a faster rate than NPA during the study period. This suggestion is based on the observation that the recovery as a percentage of Gross NPA. Net NPA etc is still average around 10% to 20%. the study evaluated the trend in movement of total NPA – sector wise and recovery of NPA accounts through SARFAESI Act.

286 Median 7.873 94.709 8.337 12.396 16.400 76.385 Deviati on Standar 1.465 493 31.672 .33 514.523 24.764 121 9.244 -1.498 Std 3.037 22.559 11. 1: Descriptive Statistic – NPA Sector wise (2003-04 to 201011) Amount in Rs.472 94.175 9.718 6.788 0.186 796 2.793 d Error Kurtosi 4.139 0.814 0.209 685 46.818 266.588 0.502 6.417 27.511 47.157 s Skewne 2.199 -0.161 1.658 299 21.283 3.956 58.517 477 33. Crores Agricult Micro & Others Priority Public NonTotal ure Small Sector Sector Priority Enterpris Sector e Minim 6.362 46.265 244.292 64.13 3.559 47.Table No.077 1.551 386 25.310 1.488 8.041 ss Range 9.29 7 9 1 Statistics Mean 9.942 9.420 1.251 7.424 0.660 15.745 43 3.626 -1.513 um Sum 73.990 14.354 2.524 2.841 um Maxim 16.322 5.783 30.

241 3.960 Statistics Media 131 3.405 .097 rd Error Kurtos 0.013 0.593 10. 2: Descriptive Statistics – Recovery of NPA Accounts Amount in Crores Lok DRT SARFAE Adalat SI Act Minim 96 2.103 rd Deviat ion Mean 141 3.Table No.561 mum Sum 1.301 4.370 Standa 15 277 1.156 um Maxi 223 4.409 34.443 is Skewn 1.102 ess Range 127 2.485 0.759 5.866 n Standa 43 783 3.710 11.126 26.117 1.449 2.

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