Trends of non-performing assets (NPAs) in the commercial banks of India: An analysis
Non-Performing Assets are a major issue and challenge for banking industry. Non-performing Assets are threatening the stability and demolishing bank’s profitability through a loss of interest income, write-off of the principal loan amount itself. Amongst the various desirable characteristics of a well-functioning financial system, the maintenance of a few non-performing assets (NPA) is an important one. NPAs beyond a certain level are indeed cause for concern for everyone involved because credit is essential for economic growth and NPAs affect the smooth flow of credit. The paper outlines the concept, types, causes and impact of non-performing assets in the banking context. Moreover, the NPA scenario of Indian commercial banks for the recent years has been traced.