Summer training

Under the guidance ofMr. SOMNATH SINHA AGM,ARM Bank of Baroda Regional office Lucknow Presented byPRASHANT JAIN MBA(FINANCE) 3rd Semester

PROJECT TOPIC SARFAESI ACT

Introduction:
MY topic for presentation was SARFAESI ACT , that is

securitization and reconstruction of financial assets and enforcement of security interest act.
The project explains the SARFAESI ACT its their features and

its impact on recovery process.

The project also explains the necessity of this act.

PROJECT OBJECTIVES:
To understand the procedure of SARFAESI ACT. To have the knowledge of how to negotiate with

borrowers.
To have the corporate exposure and understand

the working environment of Bank of Baroda.

Research Methedology
Research Type descriptive(qualitative) Data used - secondary Tools personal observation.

FINDINGS - CHALLEGNES & ISSUES

ARREARS OF TAX PAUSITY OF DRTs.

SUBSITUTE THE DISTRICT MAGISTRATE TO CHIEF JUDICIAL

MAGISTRATE.
BORROWERS ARE NOT ACQUANTED OF THIS ACT.

Banks and Financial institutions are ill-equipped to take

over the management of business of the borrower due to lack of expertise in business management.

SUGGESTIONS

THERE ARE PLENTY OF ISSUES WHICH NEEDS TO BE ADDRESS.

Conformity with the provisions of the Companies Act

that recognize the priority of secured debt over claims of the revenue. NBFCs and RRBs should come under the purview of SARFAESI act. Timeframe of banks reply to borrower is 7 days should be enhance.

Conclusion:
The objective of SARFAESI ACT was to facilitate expeditious

recovery of defaulted loans of banks and financial

institutions.
The enforcement power of securities conferred on banks by

virtue of this legislation has led to a drop in nonperforming

assets (NPA) of banks at 1-2% of total advances.

It has also brought about better discipline among borrowers

to repay loans.