Non-performing assets: navigating the banking woes through an integrative review

Abstract

The literature on non-performing assets (NPAs) in the banking sector, though vast, lacks cohesiveness. This article aims to review, synthesize, and track the evolution of research on NPAs in the banking sector. The study undertakes a comprehensive integrative review of the literature, focusing on the quantitative aspects through a bibliometric analysis, and qualitative aspects through a systematic approach. A total of 1,285 research articles, retrieved from the Scopus database, were analyzed for 27 years. The study unveils the theoretical foundations and current status of literature on NPAs. The findings capture the evolution of various themes in the NPA domain across three phases, and the co-citation analysis leads to the identification of six distinct themes that have developed. It also provides an overview of the emerging keywords that present opportunities for further investigation and highlights the gaps for future research. The reliance on a single database for sourcing relevant documents, and the use of a pre-set screening criteria may have led to the exclusion of articles that might have been suitable, but outside the scope of our source. However, by enhancing the understanding of the researchers on the topic, and enabling banks as well as policymakers to have a holistic insight for better decision-making on NPAs, this article has academic as well as practical implications for the banking sector. To the best of our knowledge, this is the first study to combine a qualitative review with a quantitative technique to identify the developments in the NPA literature comprehensively.