NON PERFORMING ASSETS (NPA) DAMPENS THE FINANCIAL STABILITY OF INDIAN BANKS

Dr. G. Kavitha

Abstract


In Indian economy most of the capital flows through banking channel. To move the economy of a country need capital, land and labor. NPA is any asset of a bank which is not earning any income. Most of the investment has to be from private or corporate. The private sectors who got loans from banks are not able to repay which is the case in today’s situation ‘Banking sectors plays vital role in mobilizing the valuable resources of the country, and provides a bridge between depositors and investors. The banking cycle helps the country’s growth, production and employment., If the banking industry in any country has bad loans within 3% it is considered manageable. Indian banks bad loans were about Rs.10.25 lakh crore as on 31 March 2018. The current situation of NPAs causes and impacts  of  NPAs are discussing  in  this article. The measure  taken  by  the  government to  recover  the bad loans also analyze elaborately.


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References


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