The government has informed the Parliament that around 11 banks have recovered Rs 61,000 crore via one time settlement in nearly four financial years. These figures are for the last 3 financial years and up to December 2021 of the current fiscal.
Bhagwat Karad, Minister of Finance said in the Lok Sabha that as per the instructions given by RBI, it is mandatory for the banks to have a board-approved loan recovery policy covering negotiated settlements through compromise, including one-time settlement under which recovery in non-performing assets loan accounts is to be effected to the maximum extent possible at minimum expense. Karad said such measures are taken to facilitate the banks promptly recycling their fund with advantage.
The banks that recovered through OTS are Punjab National Bank, Bank of India, Bank of Baroda, India Bank, Canara Bank, Central Bank of India, Union Bank of India, UCO Bank, India Overseas Bank, Bank of Maharashtra, and Punjab & Sind Bank.
