Management of Non Performing Assets in Indian Banking System

Prabodhini Wakhare, Shivaji N. Borhade, K.D. Jadhav

Abstract


Management of non-performing assets is the most important factor for the basic viability of the banking system.  The Indian banking system has been facing the serious problems of the rising NPAs. In fact, PSBs are facing more problems than the private sector banks. The NPAs in PSBs are growing due to external as well as internal factors. Managing the NPAs has emerged as one of the major challenges facing banks today as high level of NPAs affects core performance area of the banking system as well as raises corporate governance issues.

The asset quality of banks is an important indicator of their financial health which also reflects the efficacy of their credit risk management and recovery environment. Rising NPAs are not just hurting banks' profitability but are also reducing the amount of funds available for fresh lending as banks need to make higher provisioning for bad debts. In an attempt to study the management of NPAs in Indian banking system, this study discussed conceptual framework of NPAs and analysed the trends of NPAs in PSBs, private sector banks and foreign banks. It was observed that containing NPAs has been in focus since the Indian banking sector reforms were initiated in 1992. The banks have been making efforts to contain the NPA level. Even, RBI has also tried to develop many schemes and tools to reduce the NPAs.


Keywords


: Non-performing assets, Management, Public sector banks, Private sector banks, Foreign banks

Full Text:

PDF

References


C. S. Balasubramaniam(--). Non Performing Assets and Profitability of Commercial Banks in India: Assessment and Emerging Issues, Abhinav National Monthly Refereed Journal of Reasearch in Commerce and Management pp. 43-52, www.abhinavjournal.com.

Chaudhary S. and Singh S. (2012). Impact of Reforms on the Asset Quality in Indian Banking, International Journal of Multidisciplinary Research Vol. 2(1) pp.13-31.

Mohan Kumar and Govind Singh (2012). Mounting NPAs In Indian Commercial Banks, International Journal of Transformations in Business Management, Vol. 1(6), April-June, pp.1-6, http://www.ijtbm.com.

G.V. Bhavani Prasad and D. Veena (2011). NPAs Reduction Strategies for Commercial Banks in India, International Journal of Management and Business Studies, Vol. 1(3), September, pp.47-53.

Indian Banking Sector Update for 2013-14 and Outlook Profitability Pressures Continue, Economic Recovery Holds the Key for a Turnaround, June 2014.

Khanna P. (2012). Managing NPAs in Commercial Banks. Gian Jyoti E-Journal, Vol. 1(3), April-June, pp.153-163.

Meenakshi Rajeev and H P Mahesh (2010). Banking Sector Reforms and NPA: A Study of Indian Commercial Banks, Working Paper.

Patidar and Kataria (2012). An Analysis of NPA in Priority Sector Lending: A Comparative Study between Public Sector Banks and Private Sector Banks of India, Bauddhik, Vol. 3(1), pp. 54-69.

Rao K. S., Rao Y. V. And Phani Kumar K. (2012). Management of Non Performing Assets in Indian Banks- A Qualitative Analysis, IIM Journal, Vol. 1(1), July- December, pp. 100-109.

Ratikanta Ray (2013). Management of NPA in Banks: A Comparative Study of Commercial and Co-operative Banks with Reference to Selected Banks in Pune, ASM’s International Journal of Ongoing Research in Management and IT INCON VIII www.indianresearchjournals.com.

Ray Ratikanta (2013). Management of NPA in Banks: A Comparative Study of Commercial and Cooperative Banks with Reference to Selected Banks in Pune, ASM’s International E-Journalof Ongoing Research in Management and IT,INCON 13.

Reserve Bank of India (2013) Master Circular – Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, July.

Reserve Bank of India (2013). Report on Trend and Progress of Banking in India 2012-13.

Samir, Kamra Deepa (2013). A Comparative Analysis of NPAs of Selected Commercial Banks in India, Opinion: International Journal of Management, Vol. 3(1), June, pp. 68-80.

Selvarajan B. And Vadivalagan G. (2013). A Study on Management of Non Performing Assets in Priority Sector Reference to Indian Bank and Public Sector Banks, Global Journal of Management and Business Research, Vol. 13(1).

Singh Asha (2013). Performance of NPAs in Indian Commercial Banks, International Journal of Marketing, Financial Services & Management Research, Vol. 2(9), pp.86-94.

Sontakke Ravindra and Tiwari Chandan (2013). Trend Analysis of NPA in Scheduled Commercial Banks in India, International Journal of Application or Innovation in Engineering and Management (IJAIEM), Special Issue for National Conference on Recent Advances in Technology and Management for Integrated Growth 2013 (RATMIG 2013), www.ijaiem.org.

Tanmaya Kumar Pradhan (2012). Management of NPAs in Comercial Banks in Odisha: AN Empirical Analysis, International Journal of Scientific and Research Publications, Volume 2, Issue 9, September 2012, pp.1-5


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.