Now the loan will not get stuck, these 5 banks including SBI has taken a big step together for recovery.

At present, only three to four government banks are outsourcing the recovery of stuck loans. In such a situation, once this agency is formed, it will help the banks to focus on the stuck loans of big defaulters instead of these small loans.

It is very common for banks to get stuck loans given to people. But when the loan gets stuck, it becomes very difficult to recover it. But five public sector banks have come together and made a strategy so that the stuck loans can be recovered. Five banks including SBI, PNB and Bank of Baroda are working forward on a plan to create a common collection agency for the recovery of retail and MSME loans of less than Rs 5 crore.

Joint steps for loan recovery

According to a report in Economic Times, for now, a firm will be formed by these five public sector banks - PSB Alliance Private Limited, which will be based on proof of concept and will later be joined by other banks. The purpose of forming it on the lines of National Asset Reconstruction Company Limited is that it will help banks focus on core banking activities. Especially, in such cases when a single loan taker has taken money from many banks.

Now there will be a special way of loan recovery

At present, only three to four government banks are outsourcing for the recovery of stuck loans. In such a situation, once this agency is formed, banks will be able to focus on stuck loans of big defaulters instead of these small loans.

It is worth noting that there have been many such cases, including the PNB fraud case, when the bank has come to know about the fraud much later. In such a situation, if there is a separate agency for the recovery of these small loans in time, then the bank will get a full opportunity to focus on its big loan borrowers. As soon as the agency starts working for these five banks, it is expected that other banks will take its help in the future.