In order to bring about better recovery mechanism regarding non performong assets (NPAs) and thereby reduce it, south based lender, Karnataka Vikas Grameena (KVG) Bank has set up special recovery counselling centers across its regional offices.

According to CMD of the bank, Mr Sambasiva Reddy, "The move is likely to benefit the bank in general and the defaulters in particular, for they will be given education on importance of maintaining good record in all their banking transactions."

"Each regional office is appointing one nodal officer to monitor the campaign. In turn, the head office is supervising the whole concept.

Farmers clubs, government departments and even gram panchayats are being involved," said Mr Reddy.

The bank has been increasing its share of lending to priority sector by an appreciable amount each year.

However, bad loan recovery still remains an issue with the bank on which it is working.

The current NPA level of the bank stands at 2.06%.