International Journal of Financial Management

Jaynal Ud-din Ahmed ¹

Affiliations
1 Associate Professor of Finance, Department of Management, North Eastern Hill University, Tura Campus, Tura - 794002, Meghalaya, IN

Abstract

Non performing assets (NPAs) of the Indian banking system are now comparable to several advanced economies and signifi cantly lower than several economies in the Asian region. RBI rates reduction in NPAs as one of the major achievements of the Indian banking sector in recent year. But still the Indian banking sector is facing a serious problem of mounting quantum of NPAs. The commercial banks in India in general suffer a tendency to minimize their NPA fi gures. There is the practice of 'ever-greening' of advances through understated techniques. The earning capacity and profi tability of banks has been adversely affected by the high level of NPAs. The reduction of NPAs in banks is posing the biggest challenges in the Indian economy. The present paper is a modest attempt to diagnose the management of NPAs of commercial banks in India. Finally, it has identifi ed some of the lacunas for large quantum of NPAs of banks and proposed strategies for tackling the unbridled virus of commercial banks.

Keywords

Non Performing Assets, Indian Bank, Foriegn Bank, Commercial Bank, Assest Classification

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