Non-Performing Assets (NPAs) in the Indian Banking sector has become the subject matter of concern and debate. High NPAs not only block the capital and business turnover but adversely affects the profitability of the bank. In recent years many new laws like SARFAESI Act 2002 & 2016, Insolvency and Bankruptcy Code 2016, BASEL 1, 2 & 3 regulations and regulatory bodies like DRT 1993, NCLT 2016 have been established to monitor and control NPA.

In light of above statements:

a. Spell out the major reasons for increase in NPAs since past years

b. Explain how SARFAESI Act helps the bank in recovery