A Study on Analysis of Non-Performing Assets and Its Impact on Public Sector Banks in India

Understanding the impact of non-performing assets on public sector banks in the Indian economy

Abstract

In an Indian Economy, Banking and Financial Sector get high priority. The banks in India are facing the problem of Non-Performing Assets (NPAs). The earning capacity and profitability of the banks are highly affected because of the existence of NPAs. Moreover, the non-performance as no-receipt of interest and principal blocked banks money in the form of funds and is not available for further use of banking business and thus the profit margin of the banks goes down. In this connection bank must aware of the problems and recovery legislations of NPAs. A non-performing asset is defined as an asset that ceases to generate incomes to the banks for more than 90 days. This paper deals with the problems of non-performing assets of the public sector banks tries to find the suggestive measures to keep a control on the increasing NPA in the banking sector in India.