The government has advised Public Sector Banks to take new
initiatives to increase the pace of recovery and manage Non-Performing Assets (NPA). The initiatives include appointment of nodal officers and special drives for recovery of loss assets. Replying to questions in the Rajya Sabha, Finance Minister P Chidambaram said NPA have increased over the years. He, however, echoing the sentiments of the members, said recovery of loans from poor people should be done in a respectful manner. Mr Chidambaram cautioned severest action will be taken against those banks which employ musclemen to recover loans from people. Mr Chidambaram also said no special favour has been shown to any large borrower.