ASSET QUALITY MANAGEMENT IN INDIAN COMMERCIAL BANKS

Asset Quality Management is crucial in evaluating credit risk associated with assets such as loans and investment portfolios in the banking sector. Effective control and monitoring of credit risk can lead to efficient management of Asset Quality. However, the growth of troubled loans in Indian banking sector increased substantially since 2013-14, with non-performing assets (NPAs) to total advances ratio rising to 9.6% in 2016-17, and NPAs accounting for ₹1039000 crores in 2017-18. The Public Sector Banks (PSBs) witnessed a major increase in NPAs, including both priority and non-priority sectors. During the same period, the swing in the NPAs in non-priority sector rose to 72.4% in 2017 from 37.1% during 2008. Therefore, the study of Asset Quality Management in Indian Commercial Banks by Dr. Nabanita Ghosh and Dr. Srinivas K.T is timely and relevant in analyzing the factors contributing to the rise in NPAs and providing recommendations for effective Asset Quality Management. Keywords: Asset Quality Management, Credit Risk, Non-Performing Assets (NPAs), Public Sector Banks (PSBs), Priority Sector.