Abstract

A ‘Non-Performing Asset’ (NPA) is a credit facility in respect of which the interest and/ or installment of principal has remained ‘past due’ for a specified period. It has a detrimental effect on the economy as it reduces the capital flow in the economy and creates an unfavorable environment for economic growth. The paper analyses the various micro and macro determinants of NPAs in India to find whether any particular kind of bank is steadily reporting a rise in NPA. The paper also explores ‘The Insolvency and Bankruptcy Code, 2016’, and other measures that have been undertaken to tackle the issue.

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