Abstract: Loan recovery performance is a crucial indicator of banking efficiency and financial stability. Effective recovery mechanisms ensure liquidity, reduce non-performing assets (NPAs), and improve profitability. The present study examines the loan recovery performance of Canara Bank over the period 2016–2025. The study analyses recovery trends using indicators such as Gross Non-Performing Assets (GNPA), Net Non-Performing Assets (NNPA), recovery ratios, and credit growth. Secondary data were collected from annual reports of the bank, publications of the Reserve Bank of India, and other authenticated financial sources. Descriptive statistical techniques, trend analysis, and ratio analysis were employed to evaluate the performance of loan recovery over the study period.
The findings reveal that the bank experienced a significant rise in NPAs between 2016 and 2019 due to stressed corporate loans and macroeconomic challenges. However, post-2019 reforms such as strengthened recovery mechanisms, asset quality review measures, and regulatory frameworks like the Insolvency and Bankruptcy Code improved recovery performance. The bank has shown a gradual decline in NPAs and better recovery ratios after 2020, indicating enhanced credit risk management.
The study concludes that stronger legal frameworks, improved credit appraisal, and proactive recovery strategies have positively influenced loan recovery performance. The findings offer practical implications for policymakers and bank management in strengthening credit monitoring and recovery systems to ensure long-term financial stability.

Downloads: | DOI: 10.17148/IARJSET.2026.13354