Volume : II, Issue : II, November - 2012

Management of Non–Performing Assets in Andhra Bank

K. Rama Prasad, B. Ramachandra Reddy

Abstract :

Globalisation and liberalisation of Indian economy ought many changes in the Banking Sector which has shown positive effect on the economy. The Banking system in India has undergone drastic changes after financial sector reforms. A mounting level of NPA’s in the banking sector can severely affect the economy in many ways. If NPA’s are not properly managed, it can cause financial and economic degradation which in turn signals and adverse investment climate. Non–performing Asset is an important constraint in the study of financial performance of a bank as it results in declining margin and higher provisioning requirement for doubtful debts. The success of a banker lies in keeping these bad debts to the bare minimum as they cannot be avoided at all. This paper examines the trends of NPAs in India, particularly Andhra Bank in comparison with PSBs and Nationalized Banks. The scope of the study is limited to for a period of ten years i.e., from 2002–2011. The study is based on secondary data retrieved from annual reports of Andhra Bank, Report on Trend and progress of Banking n India. The objective of the study is to analyze the impact of NPAs on profitability of Andhra Bank as well as Public Sector Banks.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

K. Rama Prasad, B. Ramachandra Reddy Management of Non-Performing Assets in Andhra Bank Indian Journal of Applied Research, Vol.II, Issue.II November 2012

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