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PSU Banks to Review Loan Recovery Policies – What Does This Mean for NPAs?

1 min read | January 09, 2026 11:37 AM IST | By Team Kalkine Media

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India’s public sector banks are preparing to revise loan recovery policies to strengthen asset quality, curb non-performing assets (NPAs), and improve overall financial health. After years of stress from bad corporate loans and weak recoveries, PSU banks are expected to adopt faster identification of stressed accounts, stronger use of legal tools like the IBC and SARFAESI, and stricter action against wilful defaulters. In this video, we explain what the revised recovery framework means for borrowers, SMEs, bank profitability, credit growth, and India’s broader economy — and whether this move can finally bring lasting relief to the NPA problem.

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