Banks' recovery improves after insolvency code, changes in Sarfaesi: Report

Efforts on the part of private banks to clean up their balance sheets through higher write-offs and better recoveries contributed to low GNPA ratios in these banks

Recovery of Indian banks improved in 2017-18 after the implementation of the Insolvency and Bankruptcy Code (IBC) and amendment of the Sarfaesi Act, according to the Trends and Progress Report released on Friday.  

The central bank corrected data for the IBC recovery on Saturday morning. Earlier, the data showed that recovery under IBC had been huge and much more than other modes of recovery, but the updated data showed that the recovery under IBC was much smaller.

For the 701 cases admitted under the National Company Law Tribunals (NCLT), and claims admitted on 21 accounts for an amount of Rs 99