Performance of Non-Performing Assets in India

Abstract

A strong Banking Sector is essential for a flourishing economy. Indian banking sector emerged stronger during 2010-11 in the aftermath of global financial meltdown of 2008-10 under the watchful eye of its regulator. The level of NPA 's act as an indicator showing the credit risks & efficiency of allocation of resource. NPA involves the necessity of provisions, any increase in which bring down the overall profitability of banks. An excessive rise in interest rates over the past 18 months has led to a sharp increase in non-performing assets. This not only affects the banks but also the economy as a whole. This paper deals with understanding the concept of NPA, the causes and overview of different sectors in India.