Non Performing Assets of the Indian Banking System: A Critical Evaluation

Abstract

A healthy and a sound banking system is essential for an economy. The best indicator for the health of the banking industry in a country is its level of Non Performing Assets (NPAs). NPA has a direct impact on the profitability, liquidity and solvency of the bank. Burgeoning NPA has been one of the major glitches of Indian Banking System. Given the importance of NPA's for Indian Banking in the present paper we study Non Performing Assets of Indian Scheduled Commercial Banks. To understand the status of NPA in this paper we have Public Sector Banks, Private Sector Banks, Nationalized Banks, SBI Group, All Scheduled Commercial Banks. We have also projected the figures of Gross NPA of all Public Sector Bank, Nationalised Bank, SBI Group, Private Sector Bank, All Scheduled Commercial Bank.