Andhra Pradesh

Call for concerted effort to prevent piling up of NPAs

Judge of the Supreme Court Justice V. Ramasubramanian addressing a seminar in Vijayawada on Saturday.

Judge of the Supreme Court Justice V. Ramasubramanian addressing a seminar in Vijayawada on Saturday.   | Photo Credit: V. RAJU


SC Judge highlights role of bankers, advocates in debt recovery process

Banks should give some leeway to the industries in recovering loans on a case-by-case basis lest they should slip into the red, Judge of the Supreme Court Justice V. Ramasubramanian said on Saturday.

While the banks were supposed to extend credit facility after due diligence, the borrowers should remember that it was their basic responsibility to repay the loans, Mr. Justice Ramasubramanian said.

He was delivering the keynote address at a seminar on ‘Role of bankers, advocates and guidance of judiciary in the recovery of NPAs - Laws related to recovery of NPAs in theory and practice’, organised by the Nyayavadi Sangham, DRT, Hyderabad, in association with the Bezawada Bar Association (BBA) here.

As the Non-Performing Assets (NPAs) imposed a huge burden on the banks and had a cascading effect on the national economy, the bankers and the advocates specialising in bankruptcy laws should make a concerted effort to prevent further piling up of the NPAs, he stated, and observed that only a handful of public sector banks had NPAs within the manageable limits.

Mr. Justice Ramasubramanian said all the stakeholders in the debt recovery process should be well acquainted with the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, and the Insolvency and Bankruptcy Code to effectively deal with loan defaults so that the economy on the whole did not go down with the mounting bad debts.

The recommendations made by the Narasimhan Committee and various other expert panels in the 1990s and thereafter on the ways to tackle the NPAs were of great help in grappling with the problem, Mr. Justice Ramasubramanian observed.

A challenge

Ambadipudi Satyanarayana, president of the Nyayavadi Sangham, DRT, Hyderabad, and Varanasi Dharma Suri, secretary, highlighted the issues faced by the legal professionals in recovering loans from borrowers.

High Court Judges Justices C. Praveen Kumar and M. Seetharama Murthi, SBI General Manager Srinivasan, and BBA president Popuri Lakshmi Kanth participated.

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Printable version | Jan 26, 2020 2:44:40 AM |

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