Published Paper Details:

The catastrophic impact of stressed assets coupled with the obvious provisioning and hence a hit on the bottom line of the financial institutions has taken its toll on the banking sector in India making it reel under it. A healthy banking sector functioning smoothly and profitably is a sine qua non for any growing economy but for India it is the mythological "elixir". Statistics show that credit growth is linked with the growth of economy and vice versa. The stressed assets hit the very nerve of it. Tougher BASEL norms vying for strict and upward provisioning against bad debts leave the banking sector in peril as they huff and puff for more capital. The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002.) came as a breather at the early stage of the new millennium. It was touted as a go for all type of legislation for banking institutions given its objective of recovering bad debts without intervention of the courts in India. This paper makes an attempt to ascertain its impact viz a viz other modes of recovery mechanism in bringing down the quantity of stressed asset.