{"id":3520,"date":"2019-05-13T22:06:32","date_gmt":"2019-05-13T16:36:32","guid":{"rendered":"http:\/\/yourcareerheights.com\/?p=3520"},"modified":"2019-05-13T23:52:29","modified_gmt":"2019-05-13T18:22:29","slug":"haircut-in-loan-recovery","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=3520","title":{"rendered":"Haircut in Loan Recovery"},"content":{"rendered":"
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WHAT IS HAIRCUT IN LOAN RECOVERY ?<\/span><\/h3>\n

1. In banking, haircut means the difference between the actual dues form a borrower, and the amount he settles with the bank.<\/span><\/p>\n

2. When there is no hope of loan recovery, bank will write-off it as one time settlement. It is better to recover something rather than losing what is lent.<\/span><\/p>\n

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3. Suppose, loan dues stand at Rs.25 crore, and the amount settled for recovery is Rs. 20 crore, the haircut amount is Rs.5 crore.<\/span><\/p>\n

4. Haircuts are not ideal for recovery. But if it is a one time cash settlement, it will go straight in to profit and loss account.<\/span><\/p>\n

Article by Shri Arvind Mannur – Former Chief economist at Central Bank of India<\/a><\/em><\/p>\n

For details on Haircuts please click on the following link:\u00a0Haircuts: A way to address NPAs in banking system<\/a><\/p>\n

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