As many as 11 banks have recovered nearly Rs 61,000 crore by way of one-time settlement in nearly four financial years, the government informed the Parliament on Monday.

Share Market Live

NSE

The figures are for the last three financial years and up to December 2021 of the current fiscal, the government stated.

As per instructions of the Reserve Bank of India, banks are required to have a board-approved loan recovery policy, which may cover negotiated settlements through compromise, including one-time settlement (OTS) under which recovery in non-performing assets (NPA) loan accounts are to be effected to the maximum extent possible at minimum expense, Minister of State for Finance Bhagwat Karad said in a written a reply to the Lok Sabha.

He said the intent of such measures is to help banks promptly recycle their funds with advantage.

"All nationalised banks have board-approved loan recovery policy in place. As per input received from the 11 nationalised banks, OTS was approved in 38,23,432 cases during the last three financial years. Further, the aggregate amount of Rs 60,940 crore has been recovered through OTS by these nationalised banks during the last three financial years and up to December 2021 of the current financial year," Karad said.

These 11 banks included — Punjab National Bank recorded the highest number of OTS at 8.87 lakh, followed by Bank of India (4.97 lakh); Bank of Baroda (4.34 lakh); Indian Bank (4.27 lakh); Canara Bank (4.18 lakh); and Central Bank of India (4.02 lakh), Union Bank of India (2.99 lakh); UCO Bank (2.38 lakh); Indian Overseas Bank (1.33 lakh); Bank of Maharashtra (63,202) and Punjab & Sind Bank (20,607).