The fundamental role of banks is to accept deposits and make loans. They make loans with specific terms and restrictions attached. Some of the approved loans may be repaid constantly, periodically, and systematically by the borrowers in accordance with the agreed terms and conditions, although they may not be repaid on time or with a time lag. The temporal lag may become longer and irreversible at times. The bank's loan is an asset because it is a receivable amount for the bank. It is a performing asset if the loan is being systematically repaid by the borrower; otherwise, it is a non performing asset if it is not being paid regularly and efficiently. Non-performing assets are those that have been in default on interest and/or principal payments for longer than 90 days. Banks are burdened by nonperforming assets. They have a negative impact on bank performance, and increasing non-performing assets might lead to business closure. For the proper operation of the bank, these should be examined, monitored, analysed, and finally managed on a regular basis. A systematic regulatory process must be used for this, and its flawless execution must be ensured. (Newly added: People who are unaware of this risk losing their hard-earned money if they deposit it in banks with higher NPAs, even if deposit insurance is in place.) Because deposit insurance is only available to a limited extent. Deposit insurance is provided up to $5,000,000.) In this research, a study of non-performing assets of banks in various sectors in India has been attempted utilising percentages and indexed values. The analysis is entirely based on secondary data gathered from the Reserve Bank of India's statistical handbook. The information gathered is collated, analysed, and conclusions drawn.
Author (S) Details
R. S. N. Sharma
Department of Commerce, Ch .S. D.St Theresa’s Degree College for Women, Eluru (AP), India.
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