NPA transfer to Asset Recovery Management Branch

Querist : Anonymous (Querist) 07 December 2010 This query is : Resolved
Can bank transfer NPA account to its Asset Recovery Management Branch even while the Recovery suit is being heard/pending at DRT??

How does the bank benefit by this action??

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Devajyoti Barman (Expert) 07 December 2010
Yes, by way of deed of assignment.

Raj Kumar Makkad (Expert) 07 December 2010
Agreed.

s.subramanian (Expert) 08 December 2010
yes

Advocate. Arunagiri (Expert) 08 December 2010
I agree.

Parthasarathi Loganathan (Expert) 08 December 2010
It is only a simple accounting procedure permitted by RBI for specialized monitoring of NPA accounts which is in no way prejudice to any legal proceedings and the borrower will hold all his identity as documented

malipeddi jaggarao (Expert) 08 December 2010
I agree with mr.parthasarathi. Further Bank will be benefitted to transfer such accounts to one branch for better administration and to ease out the regular branches from the burden of NPA Management for better customer service. Asset Recovery Branches whereto all the NPA accounts are transferred can monitor these impaired assets in a better manner. As far as borrowers (of these NPA account) are concerned there is no change in their status or whatsoever.

Kirti Kar Tripathi (Expert) 08 December 2010
i do agree with Mr. Parth

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