Non Performing Assets and Indian Banks: Emerging Challenges and Way Forward

The Non-Performing Assets have become a major cause of worry for the banks. The successes of banks depend on how it manages and control NPAs. This study is a macro approach to analyze the performance of commercial banks in India in the background of raising Non-Performing Assets during the last few years. The main objectives of the study are to analyze the performance of nationalized banks in the present scenario of mounting NPAs to highlight the trend of Gross NPA and to explore remedies to control and manage the problem. The study uses the latest published secondary data for the years 2009–2014 and the data sources includes various audited reports and publications of the Reserve bank of India. The results disclose that the GNPAs of Nationalized banks in India are increasing quickly. This pulls banks into a very dangerous situation in terms of both asset quality and financial stability. Thus, depoliticizing banking activity is necessary for the successful working of the banking sector and there by the economy as a whole.