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Recovery

Loan recovery mechanisms and stressed asset management.

Articles

A loan does not become unrecoverable overnight. Here is how classification into a Non-Performing Asset works and what recovery options banks and borrowers typically consider.

05 Sep 2026 · 2 min read

Frequently Asked Questions

No. NPA classification is an accounting and provisioning treatment reflecting overdue status; a write-off is a separate, later decision the bank may take for accounting purposes, and it does not extinguish the borrower's legal repayment obligation.

Yes — an OTS is typically reported to credit bureaus as a settled (rather than fully closed) account, which can negatively affect the credit score and future loan eligibility.