International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064


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Doctoral Thesis | Law | India | Volume 13 Issue 4, April 2024 | Rating: 4.9 / 10


Non-Performing Assets: The Cause of Concern for Banking Industry

K. Aashika [3]


Abstract: This paper delves into the critical issue of Non - Performing Assets NPAs in the Indian banking sector, spotlighting the sluggish progress in managing problem loans that pose a significant challenge. It thoroughly examines the determinants of NPAs by reviewing existing studies and the impact of governmental initiatives aimed at mitigating these challenges, such as the establishment of the National Asset Reconstruction Company NARCL, the launch of UPI Lite, and the introduction of the Digital Rupee, among others. The discourse extends to the identification and comparison of NPA definitions across Asia, shedding light on the variance in regulatory and accounting perspectives. Additionally, the paper scrutinizes the exit criteria for NPAs and their implications on the reported levels of NPAs across jurisdictions. Concludingly, it emphasizes the detrimental effect of rising NPAs on the lending capacity of banks and underscores the importance of stringent capital adequacy norms, like the CRAR, to cushion against unexpected losses. Through an analysis of various strategies employed in loan recovery, the paper critiques the inconsistency in banks approaches and suggests a harmonized effort to bolster the financial health of the banking system, highlighting the pivotal role of regulatory norms and provisioning in curbing NPAs and fostering economic resilience.


Keywords: Non - Performing Assets NPAs, Indian banking sector, capital adequacy norms, loan recovery strategies, governmental initiatives


Edition: Volume 13 Issue 4, April 2024,


Pages: 352 - 354


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