Authors : Dr. V. Kanimozhi; P. Muthu Ganesh

Volume/Issue : Volume 9 - 2024, Issue 6 - June

Google Scholar : https://tinyurl.com/nsjdpe92

Scribd : https://tinyurl.com/24h8m684

DOI : https://doi.org/10.38124/ijisrt/IJISRT24JUN1696

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : The banking sector is a crucial financial service industry that supports development plans by channelling funds for productive purposes, facilitating the flow of funds from surplus to deficit units, and aiding in the implementation of government financial and economic policies. Banks fulfil social objectives through priority sector lending, extensive branch networks, and employment generation. Maintaining asset quality and profitability is essential for the survival and growth of banks. However, a significant challenge faced by the banking sector is the prevalence of Non-Performing Assets (NPAs). The Reserve Bank of India defines an NPA as “an asset, including a leased asset, that ceases to generate income for the bank.” Major causes of NPAs include wilful default, misuse of borrowed funds, and inadequate pre-loan inquiries. As of June 30, 2018, the Gross NPA of Indian banks was ₹10.03 lakh crores, with Public Sector Banks accounting for 88.74% of this total. The top five Public Sector Banks—SBI, PNB, IDBI, BOI, and BOB—make up 46.67% of the Gross NPAs. Private Sector Banks hold 11.26% of the total Gross NPAs, with leading banks being ICICI, AXIS, and HDFC. The primary aim of this paper is to examine the causes and effects of NPAs in the banking sector.

Keywords : Non-Performing Assets, Banking Sector, NPA, Banks Health, Finance, Banks Profitability.

References :

1. Dr. G. Syamala Rao, Mr. K. Prem Chand, Mr. J. Purushotham (2020). “Causes and Effects of Non-Performing Assets in the Banking Sector”. International Journal of Management, Technology and Engineering Research Volume 8, Issue XII, DECEMBER/2018 ISSN NO: 2249-7455
2. https://www.researchgate.net/publication/346445809
3. Dr. Ujjwal, M. Mishra, Jayant R Pawaskar. “A Study of Non-Performing Assets and its Impact on Banking Sector” Journal for Research | Volume 03 | Issue 01 | March 2017 ISSN: 2395-7549
4. Dr. Sonia Narula, Monika Singla "Empirical study on Non-Performing Assets of Banks” International Journal of advance Research in Computer science and management studies, Volume 2, Issue 1, January 2014, ISSN: 2321-7782
5. Dr. Sasmita Giri, Udit Jaswal, Shruti Patil, Cluster (2019) “A Study on Impact of NPA’s on Banks Profitability”
6. Abhani Dhara K. (2017). “An empirical study of the impact of NPA over the profitability of leading private sector banks”. International Journal of Applied Research, 3(8), 16–20.
7. Agarwala, V., & Agarwala, N. (2019). “A critical review of Non-Performing assets in the Indian banking industry”. Rajagiri Management Journal, ahead-of-print(ahead-of-print).
8. https://doi.org/10.1108/ramj-08-2019-0010