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-TOPIC-
Management Of Non-Performing Assets (NPA)
Submitted By-
• Nikhil Khoiwal 21BBAN171
• Arin Singh Nirban 21BBAN169
• Deepanshu Bansal 21BBAN170
• Priyansh Jangid 21BBAN173
Submitted To-
Lokesh Tilwani
Maximizing Recovery and
Mitigating Risk: Best
Practices for Non-
Performing Asset
Management
Introduction
Welcome to the presentation on
M aximizing Recovery and M itigating Risk:
Best Practices for Non-Performing Asset
Management. In this presentation, we will
discuss the strategies and techniques to
manage non-performing assets
effectively.We will also explore the
challenges faced in the process and ways
to overcome them.
Understanding Non-Performing Assets
Non-performing assets are loans or advances
that have stopped generating income for the
lender. It is crucial to identify the root causes of
non-performing assets,which could be due to
borrower's inability to repay, economic
downturns,or other external factors.
Understanding the reasons behind non-
performing assets is essential to develop
effective strategies for recovery.
Assessi
ng the Ri
sks
Assessing the risks associated with non-
performing assets is critical to mitigate
potential losses. It involves analyzing the
borrower's creditworthiness, collateral value,
and market trends. By assessing the risks, we
can develop strategies to minimize losses and
maximize recovery.
Recovery Strategies
There are various recovery strategies for
non-performing assets, including
restructuring,recovery through sale,and
asset reconstruction.Restructuring involves
modifying the loan terms to make it easier
for the borrower to repay.Recovery through
sale involves selling the non-performing
asset to recover the outstanding amount.
Asset reconstruction involves transferring
the non-performing asset to a specialized
agency to recover the outstanding amount.
Challenges in Non-Performing Asset Management
Non-performing asset management
poses several challenges,including legal
and regulatory hurdles,lack of adequate
recovery mechanisms, and lack of skilled
personnel.Addressing these challenges is
crucial to ensure effective non-
performing asset management.
Best Practices for Non-Performing Asset Management
Effective non-performing asset
management requires a robust
framework that includes timely
identification of non-performing assets,
regular monitoring, and effective recovery
strategies. It also involves leveraging
technology and data analytics to improve
recovery rates and reduce losses.
CaseStudies
Case studies of successfulnon-performing
asset management can provide valuable
insights into effective strategies and
techniques. We will discuss some case studies
that highlight the best practices for non-
performing asset management.
Non-performing asset management is a critical aspect of
financial institutions' operations. Effective non-performing
asset management requires a comprehensive framework
that includes timely identification, risk assessment, and
recovery strategies. By implementing best practices,
financial institutions can maximize recovery and mitigate
risks associated with non-performing assets.
Concl
usi
on
Thanks!

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Non Performing Assets Ppt ..xcnvxxcvznxc

  • 1. -TOPIC- Management Of Non-Performing Assets (NPA) Submitted By- • Nikhil Khoiwal 21BBAN171 • Arin Singh Nirban 21BBAN169 • Deepanshu Bansal 21BBAN170 • Priyansh Jangid 21BBAN173 Submitted To- Lokesh Tilwani
  • 2. Maximizing Recovery and Mitigating Risk: Best Practices for Non- Performing Asset Management
  • 3. Introduction Welcome to the presentation on M aximizing Recovery and M itigating Risk: Best Practices for Non-Performing Asset Management. In this presentation, we will discuss the strategies and techniques to manage non-performing assets effectively.We will also explore the challenges faced in the process and ways to overcome them.
  • 4. Understanding Non-Performing Assets Non-performing assets are loans or advances that have stopped generating income for the lender. It is crucial to identify the root causes of non-performing assets,which could be due to borrower's inability to repay, economic downturns,or other external factors. Understanding the reasons behind non- performing assets is essential to develop effective strategies for recovery.
  • 5. Assessi ng the Ri sks Assessing the risks associated with non- performing assets is critical to mitigate potential losses. It involves analyzing the borrower's creditworthiness, collateral value, and market trends. By assessing the risks, we can develop strategies to minimize losses and maximize recovery.
  • 6. Recovery Strategies There are various recovery strategies for non-performing assets, including restructuring,recovery through sale,and asset reconstruction.Restructuring involves modifying the loan terms to make it easier for the borrower to repay.Recovery through sale involves selling the non-performing asset to recover the outstanding amount. Asset reconstruction involves transferring the non-performing asset to a specialized agency to recover the outstanding amount.
  • 7. Challenges in Non-Performing Asset Management Non-performing asset management poses several challenges,including legal and regulatory hurdles,lack of adequate recovery mechanisms, and lack of skilled personnel.Addressing these challenges is crucial to ensure effective non- performing asset management.
  • 8. Best Practices for Non-Performing Asset Management Effective non-performing asset management requires a robust framework that includes timely identification of non-performing assets, regular monitoring, and effective recovery strategies. It also involves leveraging technology and data analytics to improve recovery rates and reduce losses.
  • 9. CaseStudies Case studies of successfulnon-performing asset management can provide valuable insights into effective strategies and techniques. We will discuss some case studies that highlight the best practices for non- performing asset management.
  • 10. Non-performing asset management is a critical aspect of financial institutions' operations. Effective non-performing asset management requires a comprehensive framework that includes timely identification, risk assessment, and recovery strategies. By implementing best practices, financial institutions can maximize recovery and mitigate risks associated with non-performing assets. Concl usi on