We negotiate Board-approvable One Time Settlement (OTS) proposals with Canara Bank, Karnataka Bank, State Bank of India and other lenders active in Karnataka — with sanction letter, No Dues Certificate (NDC) and CIBIL/CIC closure as the final deliverable.
This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.
OTS outcomes in Karnataka typically settle at 45–65% of the outstanding principal for viable secured exposures, with lower recovery bands for older, doubtful accounts. The exact discount depends on collateral coverage, Canara Bank/Karnataka Bank recovery policy and the age of the NPA. Canara Bank and Karnataka Bank publish periodic non-discretionary OTS windows; State Bank of India tends to negotiate case-by-case above ₹1 Cr.
Small NPAs (typically under ₹25 lakh) get sanctioned at the branch; mid-size at the circle-level SARB; exposures above ₹5–10 Cr usually go to Zonal Committee or Board. In Karnataka, Canara Bank's SARB sits at Bengaluru for larger exposures.
Case A: Bengaluru-based Start-ups MSME, Canara Bank exposure ₹1.8 Cr, NPA since 2022 — OTS approved at 52% (₹94 L) with 25% down and 9-month tail. Case B: Mysuru-based Coffee unit, Karnataka Bank exposure ₹68 L, doubtful — OTS approved at 41% with 100% payment inside 90 days.
Common derailers: unpaid statutory dues (GST/PF/ESIC) that trigger wilful-defaulter examination; ongoing SARFAESI auction that reduces the bank's incentive to settle; wilful-defaulter tag under the July 2024 RBI Master Direction. Our diagnostic flags each of these before we file.
Writ jurisdiction seat.
Two benches at Bengaluru cover urban/IT sector borrowers; DRT Hubli handles North Karnataka MSME and agri exposures.
Start-ups & IT-services; Coffee estates (Chikkamagaluru); Iron-ore/mining logistics (Ballari); Textile MSMEs (Doddaballapur)
Auction / procedural note. Karnataka Land Reforms Act restrictions can complicate auction of agri land — buyer must qualify under the 2020 amendment before registration.
