The Study of Npa In Indian Banking Industry

Abstract

Been a recurring problem for the banking industry, negatively impacting banks' financial stability and impeding economic expansion. The aim of this research was to comprehend the reasons behind (NPAs) and suggest efficient technical solutions to lessen their consequences. The study employed a descriptive research methodology that comprised literature review, data analysis, and expert interviews. It looked into the historical patterns of NPAs in a few Indian banks. The study's conclusions suggested that technology can be a key component in solving the NPA issue. An effective technique for early detection and monitoring of possible NPAs is advanced data analytics. Banks can reduce the risk of NPAs by using data analytics approaches to examine market trends, creditworthiness, and consumer behaviour. Another important technology-based solution that was identified was the use of robust risk assessment models. Through the application of advanced algorithms and machine learning models, banks can improve the accuracy of their credit risk assessment. In order to calculate the likelihood of default and implement the necessary risk mitigation strategies, these models can assess a variety of variables, such as financial ratios, industry trends, and borrower profiles. It was also discovered that integrating technology into the collection and recovery operations was crucial to their strengthening. Recovering NPAs can be accelerated by automating collection procedures, digital payment gateways, and online monitoring programs