Better cooperation between banks and DRTs can speed up bad loan recovery

Our Economic Bureau

New Delhi, Jan 6: Faster recovery of bad loans needed a more active and closer cooperation between banks and debt recovery tribunals (DRTs), a high-level meeting has concluded.

The Debt Recovery Appellate Tribunal (DRAT), Delhi, last week convened a meeting of presiding officers of DRTs of Delhi, Chandigarh and Jaipur as well as the registrars and recovery officers of all DRTs and top management executives of banks and financial institutions. Finance ministry officials also took part in the discussions.

The deliberations focused on the need for speedy disposal of cases, particularly old cases, of non-performing assets (NPAs). Bankers were advised to cooperate with DRTs in expediting procedural formalities. DRT officials highlighted the lack of infrastructure, and were assured that the government was making all-out efforts to meet the requirements of DRTs, a press release stated. The government is also on target for computerising the work of DRAT and DRTs, targeted to be accomplished by the end of the year.

The problem of recovery in the cases disposed of by DRTs also came for discussion. Participants in the meeting endorsed the importance of recovery of debts due to banks and financial institutions, which was basically money belonging to depositors.