Banks flag 'tardy' work, piling-up of cases at debt recovery tribunals

The concerns have been conveyed to the finance ministry through the Indian Bank's Association earlier this month

The mounting pressure on banks to improve financial profile through recoveries has prompted lenders to send an ‘SOS’ to the finance ministry on the tardy decision making and pile-up of cases at the Debt Recovery Tribunals (DRTs) and its appellate forum the Debt Recovery Appellate Tribunal (DRAT). 

The tribunals are set to become designated forums for insolvencies and resolution of non-corporate entities under the Insolvency and Bankruptcy Code (IBC). 

The situation could worsen at both the forums as IBC cases are referred to them. This is because they are already grappling with regular cases.

A senior bank executive said, “The