Abstract
There has been an increase in the Credit flow to various sectors of the economy such as infrastructure, industry, services and agriculture. But simultaneously there has also been an increase in the Non-Performing Assets (NPAs) in the Indian banking sector. NPAs have direct impact on the profitability and the net-worth of the banks. The banks have to take initiatives to bring down the Non-Performing Assets. Gross NPA reflects the quality of the bank loans and the Net NPA reflect the actual burden of the banks. This paper makes an attempt to study the trends of Gross NPA, Net NPA, the impact of NPAs and the recent measures taken by the government to decrease the NPAs. Non-Performing Assets(NPA) Private Sector Bank Public Sector Bank. Asha Singh, (2013): ?Performance of Non-Performing Assets (NPAs) in Indian Commercial Banks?, International Journal of Marketing, Financial Services and Management Research, Volume 2, No 9, September, 2013, pp 86-94. U. Daru, (2016): ?NPA in Banking Sector: As an Indicator of Financial Inefficiency?, International Journal of Research in Finance and Marketing, Volume 6, Issue 12, December, 2016, pp.132-139. Pragya Prashant Gupta, (2016): ?NPA-A Curse for Indian Banking Sector?, Abhinav Journal of Research in Commerce and Management, Volume 5, No 8, August 2016, pp. 25-38. Press Information Bureau, (2016): ?Government has taken various measures to deal with the issue of Non Performing Assets (NPAs) in Banking Sector?, Ministry of Finance, http://pib.nic.in/newsite/PrintRelease.aspx?relid=142298, April, 2016. RBI, (2016): ?Report on Trend and Progress of Banking In India 2014-2015?, https://dbie.rbi.org.in/ Siti Nurain Muhmad, et.al., (2015): ?Using The Camel Framework in Assessing Bank Performance in Malaysia?, International Journal of Economics, Management and Accounting, Volume 23, No.1, 2015. [P. Vanishree Sah. (2017); A STUDY ON NON PERFORMING ASSETS OF THE INDIAN BANKS. Int. J. of Adv. Res. 5 (Apr). 1238-1242] (ISSN 2320-5407). www.journalijar.com Dr. P. Vanishree Sah CVR College of Engineering
Highlights
Reflects the quality of the bank loans and the Net Non-Performing Assets (NPAs) reflect the actual burden of the banks
This paper makes an attempt to study the trends of Gross NPA, Net NPA, the impact of NPAs and the recent measures taken by the government to decrease the NPAs
The reduction in asset quality results in accumulation of Non-Performing Assets (NPAs).The level of the NPA indicates the efficiency of a bank's credit risk management and allocation of resources
Summary
There has been an increase in the Credit flow to various sectors of the Received: 12 February 2017 Final Accepted: 18 March 2017 Published: April 2017 economy such as infrastructure, industry, services and agriculture. The asset quality is a prime concern It has an impact on profitability, liquidity, intermediation costs, credibility, income generating capacity and overall performance of the banks (Asha Singh, 2013). Precautionary measures focus on strengthening credit risk management system and continuous risk assessment systems of the bank. This will reduce the level of NPAs that have been generated. The curative measures are reactionary and focused on recovering from NPA accounts (Pragya Prashant Gupta, 2016) It includes measures taken by RBI such as setting up Asset Reconstruction Companies (ARCs), Debt Recovery Tribunals (DRTs), Securitization Act and Compromise Settlement Schemes.
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