A STUDY ON THE NON PERFORMING ASSETS OF BANKS IN INDIA
Keywords:
NPAs, NPA, classification,, Types of NPA,, Factors responsibility for high rates of NPAAbstract
Among all functions, primary function of banks is to lend funds as loans to various sectors
such as agriculture, industry, personal loans, housing loans etc., however in recent times the
banks have become very cautions in extending loans. The reason of such an initiative is the
problem pertaining to non-performing assets (NPAs). An asset becomes nonperforming when
it ceases to generate income for the bank. Prior to 31st March, 2004 a nonperforming asset
was defined as a credit facility in respect of which the interest or instalment of principal has
remained past due for a specified period of time which was four quarters. Due to the
improvements in payment and settlement system, recovery climate, up gradation of
technology in the banking system etc., it has been decided to dispense with past due concept.
This paper is going to study on the NPAs of banks in India with highest Npa’s and also
highlighting the causes, factors affecting NPA’s based on conceptual background.
