Sabu J Mechery, AGM, Canara Bank, introduced the first technical session underpinning the mental image of performing assets which provides a positive return on a regular basis. Transposition of an asset which is tagged as NPA is that it ceases to generate income for the lender and that it refers to loans and advances that are in jeopardy of defaults for more than 90 days. The justification for an asset to become an NPA carried a lot of causes including defective lending process, ineffective recovery mechanism, wilful defaults, industrial sickness, lack of demand etc. Concepts of income recognition and assets classification were also highlighted. A temporal end was made by alluding about the changing scenario of banking which have been the vexing problems faced by the banking sector.

The second technical session handled by Harikrishna Pisharody R, Senior Vice President, Federal Bank commenced by stating that NPA for obvious reasons, cause a truckload of problems. If these NPA keeps on increasing, the bank will lose out its reserves; its stakeholders will be affected and will turn end up in slow financing activities. To curb with these disorders, it has become requisite to chalk out a remedial measures for muddles like mismanagement, misappropriation of fund, diversion of finance, low demand, excess supply and the like. The kernel concepts discussed by this resource person was the recovery measures of NPA. At the very outset, identification of how these advances have become NPA, how should these be tackled etc. requires an effective strategic management system which includes conciliations, arbitrations, resolutions, mediations, IBC (Insolvency and Bankruptcy Code), Court or legal proceedings , SARFAESI Act The most extreme part of this session indicated a finale that a high level of NPA suggests high probability of a large number of credit defaults that affect the probability and net worth of banks and also erodes the value of the financial assets.

NPA is considered as an important parameter to judge the performance and financial health of bank. Alex Paikada, Finance Controller, Choice group, in his third technical session on “NPA-Customer Point of View” made a detailed treatment of how the customers should manage its borrowed funds. The harmful situation that created NPA for its customers was diversification of fund to unrelated areas, business losses due to change in business environment, financial crisis, maladministration, misgovernance etc. The need of the hour is to tackle NPA using some urgent corrective measure. Some attempts were made in this technical session to prevent the recurrence of NPA which should contains mechanism to identify hidden NPAs, provide for the development of internal skills for credit assessment and include technology and data analysis to identify the early warning signals. Creating financial awareness about management of borrowed funds is the one and only prudent measure to be adopted in the long run to bring back the affected Indian banking system.

In the last technical session the following questions were probed by the academician, Dr. Asha E Thomas, Assistant Professor, St. Pauls College, Kalamassery

• What is NPA?
• Factors considered by banker which lending?
• What should be the attitude of a borrower?
• What factors to be considered by a businessman while taking loan?
• What is disruption?
• What is recovery?

Concepts like asset quality, reasons for NPA generation, Impact of NPAs on banks, industry and in total Indian Economy were discussed in detail. Major measures adopted for identification and reporting of stressed assets which could be classified as special mention accounts were also detailed.