ROLE OF RECOVERY CHANNELS IN MANAGING NON-PERFORMING ASSETS IN SCHEDULED COMMERCIAL BANK

nowadays we are all watching, NPAs has become a major problem in the Indian banking industry and this problem is increasing day by day in the banking industry and the Indian banking industry has been struggling with a lot of Non-performing Assets over the years. The quantum of stressed advances was increased in scheduled commercial banks due to which the trend towards NPAs recovery remains sluggish. According to the RBI annual report on the trend and progress of banking system in India, the annual recovery rate of NPAs of SCBs has been continuously decreasing from previous years, and the current recovery channel i.e. DRTs, Lok Adalat, SARFAESI Act 2002, has been an important contributor to all three channels of reducing their rate of NPAs recovery. This research paper attempts to find out the effectiveness of the three channels and analyze the effectiveness of the recovery channels based on the amount of NPAs received during 6 years from 2013-14 to 2018-19 and the analysis of variance (ANOVA) test has been used to understand the significant difference in the trend of the three recovery channels. And it has been tried to see which channel has made the most recovery out of the three recovery stages.