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Abstract
Over the last two decades, India has achieved an enormous of Non-performing Assets increase day by day. The Gross NPA in the banking sector, which stood at 11.5% at end of March, 2018. Indigent asset quality adduce into undersized interest income and higher bad loan, eventually outstanding to disintegration in banking Institutes' profitability and business capital. Over time, the enlargement in NPAs can pushed to bank collapse and undermining financial soundness. Efficient and effective debt collection increases the availability of credit and lowers the cost of borrowing worldwide by reducing the losses to lenders from bad loans. Lenders otherwise make up their losses with higher interest charges on new and existing loans, and by restricting lending to borrowers at minimal risk of default. The proper redress of NPAs and recovery of bad loans rest only with pertinent credit assessment and recovery framework reforms. However, the bank's recovery improves after the implementation of Insolvency and Bankruptcy Code, 2016.