39. Banking sector reforms have proceeded apace in a phased manner over the past decade. However, the problem of non-performing assets with banks has continued. Special attention is being paid to recovery of NPAs:
l Public Sector Banks have recovered Rs 800 crore of NPAs from 2 lakh accounts in 2000-01.
l Net NPAs as percentage of net advances were almost half at
7.4 per cent in 1999-2000 compared to 14.5 per cent in 1993-94.
l 22 Debt Recovery Tribunals (DRTs) and 5 Appellate Tribunals have been established.
l 7 more DRTs will be set up during 2001-02.
40. I also propose to bring in a legislation that will facilitate foreclosure and enforcement of securities in cases of default in order to enable the intitutions to realise their dues.
41. In the light of new competition in the banking industry it is necessary to strengthen the management of the public sector banks. I propose to provide greater autonomy to bank managements. It is also essential to provide greater independence to bank managements in forming their own recruitment strategy and in implementing it. I therefore propose to abolish the Banking Services Recruitment Boards. This will be done in association with the Reserve Bank of India by July 31, 2001 or earlier. All future recruitments will be done by banks themselves.