Professional Documents
Culture Documents
Improper financing
Obsolete technology.
Uneconomic size
Delays in project implementation
Fraudulent management.
Diminishing market potential./ Life cycle theory
High project cost
Changes in direct / indirect tax structure.
Competition from unorganized sector.
Macro economic factors
1
NPA Management
The rehabilitation package for sick units is administered by the
Board of Industrial Finance Reconstruction.
Section 15 / 22 of BIFR act states that if a company has a
100% / 50% erosion of networth and cash loss in 2 successive
years both occurring simultaneously. then it should be refered
to the BIFR for rehabilitation. further, the company should be
in existence for 3 years.
Under the purview of SICA , 1986
Management of NPAs
SICA , 1986
Narsimham committee recommendations
Recovery of debt to banks & financial
institutions act 1993
Sarfaesi act 2002.
To help Banks / FIIs reduce NPAs