The efficacy of different NPA recovery mechanisms adopted by scheduled commercial banks in India like Lok Adalats, Debt Recovery Tribunals (DRTs), SARFAESI Act, and Insolvency and Bankruptcy Code (IBC)is examined in this paper. The study assesses recovery performance using the number of cases referred, amount involved, amount recovered, and recovery percentage. The study is based on secondary data collected from different RBI publications and reports for the period of 13 years, starting from year 2012-13 and ending on year 2024-25. The results of the study reflects that the mechanisms differ significantly in terms of recovery efficiency. While DRTs had delays and procedural inefficiencies, Lok Adalats handled most number of cases and even than had extremely poor recovery rates. Throughout the course of the trial, SARFAESI showed steady and reliable recovery performance. In terms of recovery percentage and value realization, especially for major corporate NPAs, IBC proved to be the most successful recovery mechanism. Strong legal enforcement and time-bound resolution mechanisms greatly increase recovery efficiency in the Indian banking industry, the study reveals.
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