NPA Consultants Pvt Ltd

  What is the purpose of the IBC?  It works towards protecting the interests of creditors. It works towards helping creditors who have been waiting for the payments for a long time. It works towards reviving the company. Apart from that, IBC also promoted entrepreneurship. It also creates a new and timely recovery procedure that can be adopted by banks, individuals, and financial institutions. Who can file an application under IBC? To initiate the insolvency process, financial creditors, operational creditors, and corporate debtors can file a petition in front of the National Company Law Tribunal or NCLT. Companies have up to 180 days to complete the insolvency exercise under the IBC. But the deadline can be extended if the creditors do not object to it. The IBC proceedings are regulated by the Insolvency and Bankruptcy Board of India (IBBI).  This board has 10 members from the Law Ministry, Finance Ministry, and the Reserve Bank of India to administer the proceedings. IB...

The full form of the SARFAESI Act The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act of 2002. It is the legislative act passed by the Indian parliament in the year 2002 to empower lenders, and it includes banks and other financial institutions to recover their bad loans efficiently. What was the background behind the sarfaesi act? Way back in the 90’s, it was observed by Narasimham Committee that banks were facing difficulty in recovering Non-Performing Assets (NPAs). Therefore, to strengthen the process, Debt Recovery Tribunals were set up in 1993, and the loan recovery process was established beyond the jurisdiction of ordinary courts. In the year of 1998, Narasimham Committee – II observed that Debt Recovery Tribunals (DRTs) are required to strengthen with a law.  Therefore, sarfaesi act was enacted in the year 2002. What is SARFAESI Act? The SARFAESI Act stands for the Securitisation and Reconstruction of Financial Assets and Enfo...

  One Time Settlement How and when the borrower should approach the Financial Institution or Bank for One Time Settlement? Inorder to avail the best OTS terms, the borrower should have a better negotiation edge over the lender Financial Institution or Bank. The Lenders are not willing to offer considerable waiver under OTS when there is ample scope to recover its entire dues by way of sale of mortgaged assets. Thus first and foremost we have to create tools which will enable us to have a better bargaining position with the Financial Institutions/ Banks. Moreover whenever the Economy is not performing well and Bankers are struggling with large number of NPA accounts and high degree of provisioning then it is in the interest of the Lender also to welcome the Borrower's move for OTS. Once the Borrower decides for One Time Settlement then it needs setting up of highly professional negotiating Desk for executing the OTS Plan. We Render Services to create tools within the legal frame wor...

  NPA Recovery & Revival Steps which can be adopted by the Banks The Bank has to assess the exact reason for NPA. The Bank should assess and grant the additional working capital requirement so that the borrower can restart its stuck business. By compromise, negotiated deal, by reducing interest or by waiving penalty so for levied in the account of borrower By converting a portion of Advance of funded term loan to enable the unit to generate income Bank can allow operations in the account when the unit is in bad shape, but retain a small portion to enable it to service the interest and thus unit will not be classified as NPA. Preventive and curative measures to be taken by Banks for containment of NPA Proper credit appraisal Identifying the weaknesses Of assets through early warning signals Up-gradation of assets through various methods Recovery of NPAs through compromise settlements, announcement of OTS Visit :  https://www.npaconsultant.in/one-time-settlement