It could be extending the repayment period or reducing the interest rate. Banks may also hire third-party recovery agents to collect overdue payments from borrowers through negotiation or legal action. 

Bank of India (BoI) uses several strategies to recover non-performing assets (NPAs), including: 

• One-time settlement

• The bank may try to settle loans with borrowers who are behind on payments. This can help avoid lengthy legal processes. 

• Debt recovery tribunals

• These tribunals can help banks recover loan balances from borrowers who are defaulting on their loans. However, the Debt Recovery Tribunal Act only applies to loans over Rs 200,000. 

• Lok Adalats

• These tribunals can help banks settle loans by compromising between bankers and defaulters. Debt Recovery Tribunals can authorize Lok Adalats to decide on cases involving NPAs of Rs 100,000 or more. 

Other strategies that banks can use to handle NPAs include asset reconstruction and legal action against borrowers.