<h1>AI-Powered Digital Collections Help Public Banks Reduce Non-Performing Assets and Improve Recovery Through Predictive Analytics</h1> Public sector banks are adopting AI-powered digital collections platforms to reduce non-performing assets and improve recovery outcomes. Spocto X's AI platform has helped institutions like Central Bank of India reduce their Special Mention Account ratio from 8% to 3%. The technology uses predictive analytics and personalized engagement strategies to cut bounce rates by 25-30%, optimize recovery, and ensure compliance. This digital transformation addresses challenges faced by public banks, whose NPAs are reportedly 40% higher than private banks. Regulatory support for ethical AI use is accelerating adoption despite legacy system challenges, with Spocto X positioned as a preferred partner for institutions making this transition.