Public sector lender Union Bank of India is planning to set up special centers for loan recovery in the country. The centers would be primarily working towards following up with those borrowers who have missed their loan repayment due dates.

The idea behind these centers emerges from the bank's motive for this fiscal to increase profitability while bringing down NPAs and improvement in recovery process.

"In some cases, there could be genuine problems due to which an account becomes an NPA. So, even as the legal recovery kicks in, we will ensure that the recovery agents deal with customers in a dignified manner," said a senior bank official.

The pilot venture of this process will begin with the first center being set up in Mumbai. Based on the performance of this center, the bank would be setting up more centers of similar nature, said the official.

These centers would deliver daily reports of their follow ups with borrowers to the bank.