Volume : VII, Issue : XII, December - 2018

A STUDY OF TREND OF NPA OF PUBLIC SECTOR BANKS IN INDIA

Pruthvirajsinh N Rathod

Abstract :

 

A solid banking sector is necessary for healthy economy. The failure of the banking sector may have an adverse impact on other sectors of the country too. The issue of Non–Performing assets has been discussed at length for financial system all over the world. Non–performing assets are one of the main issues for banks in India now. NPAs highlights the performance of the banks. A high degree of NPAs suggests high probability of a large number of credit defaults that affect the profitability, productivity , performance and net worth of banks and also erodes the value of the asset and image of banks. The NPA growth involves the necessity of provisions, which reduces the overall profits and Shareholder’s value. In fact high level of NPAs in Indian banks is nothing but a reflection of the state of health of the industry and trade. This paper makes an attempt to study the term NPA and classification of NPA. The main objective of study is to understand the trend of NPAs in Public sector banks in India. There is great need to establish an effective recovery system that helps banks to strengthen their performance. Private sector Banks have effective and  better loan recovery system  that makes their NPA ratio low compare to their counterparts Public sector banks.  Public sector banks have to follow steps taken by Private sector to recovery of loan immediately. 

Article: Download PDF    DOI : https://www.doi.org/10.36106/paripex  

Cite This Article:

A STUDY OF TREND OF NPA OF PUBLIC SECTOR BANKS IN INDIA , Pruthvirajsinh N Rathod , PARIPEX-INDIAN JOURNAL OF RESEARCH : Volume-7 | Issue-12 | December-2018

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