Management of Non-Performing Assets

Abstract

The issue of Non-performing assets in banks is rising day by day. The source of income for banks is the interest on loans granted by them. They are assets for the banks and considered as non-performing if the amount of interest and/or principal is not received back. Bank plays a very important role in maintaining flow of money into any economy. Due to non-performing assets, the ability of the bank to pay the interest on deposits as well as liquidity affects. Sometimes banks may lose the ability to remain solvent in the market, too. This study’s objective is to measure the management of Non-performing assets in public sector banks as well as private sector banks and to compare the same. The research is analytical in nature. Data is of secondary nature and collected from various reports of RBI as well as annual reports of the banks. Researcher has found that there is a comparatively higher level of NPA in Public sector banks than private sector banks