An Economic Analysis of Non-Performing Assets of Banks in India
Sankara Narayanan K

Sankara Narayanan K, Research Scholar, Department of Economics, Madras Christian College, East Tambaram, Chennai (Tamil Nadu), India.
Manuscript received on 29 November 2019 | Revised Manuscript received on 21 December 2019 | Manuscript Published on 31 December 2019 | PP: 178-182 | Volume-8 Issue-4S3 December 2019 | Retrieval Number: D10271284S319/2019©BEIESP | DOI: 10.35940/ijrte.D1027.1284S319
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Abstract: Banking and Financial Institutions are the strength of any countries economy and which plays an important role to the progress to the country. With an increase in the prerequisite of banking systems in the trade and industry development progression, the major challenge that the Bank and the Financial Institutions are facing an increase in Non-Performing Assets. The Central Bank of India (RBI) instructed all the banks to stringent the loan process to avoid the increase in NPA, which is still peaking high every year. According to the credit rating agency CRISIL, the gross NPA (GNPA) has touched almost Rs. 8,06,412 crore as on 31.3.2019 (provisional data). As per RBI provisional data on comprehensive procedures, as on 31.3.2019, the cumulative amount of unrefined NPAs of PSBs and Scheduled Commercial Banks (SCBs) were Rs. 8,06,412 crore and Rs. 9,49,279 crore correspondingly. Numerous wise accounting norms with a focus to NPA have been introduced by the RBI to diminish the Non-Performing Assets. Consequently, to progress the financial health of a banking system Non-Performing Assets management has become an important assignment of the bank. Over the last five years, Government has engaged wide-ranging phases under its 4R’s approach of recognizing NPAs evidently, undertaking and improving value from strained books, recapitalizing PSBs, and transformations in banks and financial system to guarantee a liable besides spot less structure.
Keywords: NPA, Economic Slowdown, Bad debts, Net worth.
Scope of the Article: e-governance, e-Commerce, e-business, e-Learning