Assets Classification and Trends of Nonperforming Assets of Commercial Banks in India

Dr. S. Gautami, Prof. K. Tirumalaiah, Dr. V. Sreecharan

Abstract: In a fast changing banking environment of today the very survival of a banking organization depends on level of the income generated through optimum use of assets after paying the cost of funds for acquiring them and other administrative costs involved therein. Once the assets cease to contribute the income, they are termed as Nonperforming assets, which not only have cost of funds involved but also require to be operated as per prudential norms. One of the major problems being faced by banks and financial institutions in India is that of bad debts termed as

Keywords: Non-performing Assets, cost of funds, administrative costs, Flow of funds