Non-Performing Loans
The decline in NPLs to advance ratio in India during the year 2006 was caused mainly by increased recovery and decline in fresh slippages. An vital aspect of higher recoveries in India is the establishment of Asset reconstruction Corporation (India) limited in 2003 with the objective of “focused management and “maximization of NPLs recovery which has provided a major boost to the efforts of NPL recovery. In Malaysia also, the higher interest rates and inflationary pressures in the economy did not appear to have weakened the debt servicing capacity of both the households and businesses mainly on the back of sustained encouraging economic environment, amidst progressive strengthening of risk management practices and infrastructure by banking institutions. More information: Home Loans
