Solution of bank NPA

 Government should use my economic method to reduce bank NPA( Non performing assets ). Present time government banks are facing liquidity for NPA provisining. We have seen mostly all companies after NPA settlement go to NCLT (National company law tribunal) or OTS (One time settlement ). NCLT invite bids from others for auction company. After auction company sold in 25% to 50% and bank recover only 25% to 50% of lending principle amount. Bank lost their interest amount also in that period NPA time to auction period but after auction company shares rise sharply and reached 10 times to 70 times more then their price at auction. This example present time ruchi soya (patanjali owning now) and alok Industries  (Reliance Industries owning now). Govt should make a rule that after auction which amount shortfall in principle & interest amount convert them as preferential shares so in future price hike of shares banks can get good amount of selling those shares.


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