No economy can run without proper banking. In fact banks can be said to be the progenitors of economic change. By and large public sector banks are saddled with huge NPA’s (bad debts).

A number of laws have been promulgated to make recovery of bad loans faster, primarily the setting up of Debt Recovery Tribunals and the SARFESI Act. There have been substantial changes in the Banking laws as well as the promulgation of the Insolvency and Bankruptcy code 201, to address these issues.