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Abstract
Bank plays a vital role in the economic development and growth of a country. In a developing country like India, there is a need of efficient and healthy banking system. But from past few decades NPA has become a big threat for the growth of banking sector. In the present scenario, the core financial problem for banks is NPA. Proper recovery of loans can boost the performance of banks. Therefore, an attempt is made in this paper towards examining the effectiveness of NPA recovery measures. Selected recovery measures like Lok Adalat, Debt Recovery Tribunal and SARFAESI Act are taken to study the effectiveness of NPA recovery. From the study it is inferred that recovery of NPAs is still a measure concern for commercial banks in India. One of the reason for the poor recovery from NPAs is that, the mechanism created for this purpose are not effective that’s why banks are not able to derive full benefits from these.
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