We negotiate Board-approvable One Time Settlement (OTS) proposals with Federal Bank, South Indian Bank, CSB Bank and other lenders active in Kerala — 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 Kerala 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, Federal Bank/South Indian Bank recovery policy and the age of the NPA. Federal Bank and South Indian Bank publish periodic non-discretionary OTS windows; CSB Bank 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 Kerala, Federal Bank's SARB sits at Thiruvananthapuram for larger exposures.
Case A: Kochi-based Cashew MSME, Federal Bank exposure ₹1.8 Cr, NPA since 2022 — OTS approved at 52% (₹94 L) with 25% down and 9-month tail. Case B: Thiruvananthapuram-based Rubber unit, South Indian 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.
DRT Ernakulam is the single DRT for Kerala and Lakshadweep.
Cashew (Kollam); Rubber & spices (Kottayam-Idukki); Gulf-return real estate; Fisheries & seafood exports
Auction / procedural note. Kerala Conservation of Paddy Land and Wetland Act restrictions can void auction of paddy/wetland — buyer must confirm land classification before EMD.
