Bank of India · NPA Settlement Guide

Bank of India NPA Settlement: Complete Resolution Guide

If your Bank of India loan has been classified as a Non Performing Asset (NPA), four resolution paths exist: OTS, restructuring, ARC takeover, or contesting through SARFAESI / DRT. This guide helps you pick.

What 'NPA' means at Bank of India

Bank of India classifies an account as NPA after 90 days of overdue principal / interest. Sub-standard → Doubtful → Loss provisioning follows.

Path 1 — One Time Settlement

Best when you have funds to close at a discount. Bank of India OTS typically at 55–80% of principal for secured loans.

Path 2 — Restructuring

Tenor extension, moratorium, rate revision — for viable businesses with cashflow stress.

Path 3 — SARFAESI / DRT defence

Buys time and creates negotiation leverage when Bank of India starts enforcement.

Path 4 — ARC route

Bank of India may sell the NPA to an ARC; ARC settlements often allow deeper discounts.

Decision framework

Match the path to your situation: funds available, business viability, age of NPA, security cover, and notice stage.

Frequently asked questions

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