Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Non Performing Assets: An Indian Perspective

Suresh Kumar

http://dx.doi.org/10.6007/IJAREMS/v3-i2/797

Open access

One of the major concerns for banks in India is the rising level of NPAs. NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number of credit defaults that affects the profitability and net-worth of banks and also erodes the value of assets. High NPAs degrade a bank’s credit rating, lowering its creditability as well as the ability to raise fresh capital. Moreover with high level of NPAs banks are left with less liquidity in hands to handle the day to day operations. Before the initiation or reform measures in 1990s, commercial banks were not in the habit of classifying their assets into performing and non-performing assets. The Narasimham Committee (1991) recommended the adoption of international accounting practices so that banks can make their balance sheets financial healthy. In the present paper an attempt is made to study the trends in NPAs of scheduled commercial banks in India and also to study the major reasons responsible for the high levels of NPAs. Moreover, various measures adopted in India to tackle the problem of high NPAs have also been examined.

Beena P.L.(2000),” Financial sector performance in developing countries : the Indian experience” The World Economy (March 2000),pp 429-455
Ram Mohan, T.T.Roy, Subash C, (2004),”Comparing performance of public and private sector banks-A revenue maximisation efficiency approach, EPW, March 2004, pp.1271-1275
Reddy Y.V.(2004),”Banking Sector in Global Perspective” pre-inaugural address at Banker’s Conference 2004
P.Chidambaram(2004),”Indian Banking: Realising in Global Aspiration” special address at Banker’s Confrence 2004.
Ahluwalia Montek Singh(2005),”Indian Banking :Realising Global Aspirations” Veledictory address at Banker’s conference 2004(Bancon 2004)
Gupta geetika(2010)” Basel III: Indian Banking perspective” The Bankers, vol.V, no.12, Dec. 2010, pp.51-54
Sekar K.S.(2011)” Basel III: “Making Banks Stronger” the Bankers, vol. VI no. 3, March 2011,pp. 52-57
Balasubramaniam C.S. (2012)”Non Performing Assets of Commercial Banks in India: Assessment and Emerging issues” published in Journal of Research in Commerce and management, vol. 1, issue 7, pp. 41-52
Gurumoorthy T.R. & Sudha B. (2012)” Non-Performing Assets: A Study with reference to Public Sector Banks: published in Indian Journal of applied Research” vol. 2, issue 2, pp. 7-10
Singh Asha (2013)” Performance of Non-Performing Assets in Indian Commercial Banks” published in International Journal of Marketing, Financial Services & research Management” vol. 2, issue 9, pp. 86-94
Mohan Kumar & Govind singh( 2012)” Mounting NPAs in Indian Commercial Banks” published in International Journal of Transformations in Business Management , vol. 1, issue 6
Rajeev Meenakshi & Mahesh H P (2012)” Banking Sector reforms & NPAs: A study of Indian Commercial Banks”
Mohnani Priyanka & Deshmukh Monal (2013)” A study of NPAs on selected Public and Private Sector Banks” published in International Journal of Science and Research , vol. 2, issue 4, pp. 278-281
Reserve Bank of India” Report on Trends & Progress of Banking in India” ( 2010-11, 2011-12, 2012-13)

(Kumar, 2014)
Kumar, S. (2014). Non Performing Assets: An Indian Perspective. International Journal of Academic Research in Economics and Management Sciences, 3(2), 160–171.