Volume : V, Issue : I, January - 2015

Non–Performing Assets Pertaining to Housing Finance

Mrs. P. Vijaya Lakhsmi

Abstract :

This study analysis the Non– performing assets of banks particularly in housing finance. Banking in India originated in the last decades of 18th century. The first bank of India, which started in 1786 and Bank of Hindustan, both are now defunct. Presidency Bank (Bank of Bengal, Bank of Calcutta, Bank of Madras) played its importance role. During 19th century the State Bank of India got established(1806). This is the oldest resigning bank available in India till date. The Allahabad Bank is the next oldest Bank, which is functioning today (1865). This is the Bank called as the “OLDEST JOINT STOCK BANK AVAILABLE IN INDIA” It has 2402 anches. Latter number of Public sector banks and private banks started its operation. The nature and function of banks have changed as the time has changed. The problem of Non–performing assets have been receiving greater attention since 1991 in India. The Reserve Bank of India defines Non–performing assets as a term loan inclusive of unpaid interest, when the installment is overdue for a period of six months or more or on which interest, when the installment is overdue for a period of six months or more or on which interest amount remained overdue for a period of six months or more The Narasimham committee recommended a number of steps to reduce NPA. in the 1990’s the Government of India (GOI) introduced a number of reforms to deal with the problems of NPA. To improve the efficiency and profitability of banks the NPA has to be Payment Scheduled. There is no one single method for reducing the NPA multiple strategies should be adopted from the beginning. It is highly improbable to have zero percentage NPA.But at least steps have to be taken to reduce the NPA in banks particularly in housing finance to maintain and complete with international standards.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mrs.P.Vijaya Lakhsmi Non Performing Assets Pertaining to Housing Finance Indian Journal of Applied Research, Vol.5, Issue : 1 January 2015


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