International Journal of Transformations in Business Management

(By Aryavart International University, India)

International Peer Reviewed (Refereed), Open Access Research Journal

E-ISSN : 2231-6868 | P-ISSN : 2454-468X

SJIF 2020: 6.336 |SJIF 2021 : 6.109 | ICV 2020=66.47

+91 9555269393   info@ijtbm.com


Abstract

Vol: 3, Issue: 1 2013

Page: 75-92

Recovery of NPAS in Indian Commercial Banks

Dr Jasbir Singh

Received Date: 2012-12-14

Accepted Date: 2013-01-13

Published Date: 2013-02-19

The problem of non-performing assets has shaken the entire Indian banking sector. The main reason of high percentage of NPA’s is the target-oriented approach, which deteriorates the qualitative aspect of lending. NPA’s put detrimental impact on the profitability, capital adequacy ratio and credibility of banks. The paper highlights the most significant factors contributing towards the problem of nonperforming assets from the point of view of top bankers from public sector banks in India, some foreign banks and the measures required for management of NPA’s like reformulation of banks’ credit appraisal techniques, establishment of monitoring department. The best indicator for the health of the banking industry in a country is its level of Non-performing assets (NPAs). High NPAs are one of the major concerns for banks in India. It reflects the performance of banks. Reduced NPAs generally gives the impression that banks have strengthened their credit appraisal processes over the years and growth in NPAs involves the necessity of provisions, which bring down the overall profitability of banks. The Indian banking sector is facing a serious problem of NPAs. To improve the efficiency and profitability of banks, NPAs should be reduced and controlled. This paper deals with recovery of NPAs from various Channels, major causes and effects of NPAs on Indian banks.

Back Download PDF

References

  • Aggarwal, S., & Mittal, P. (2012). Non-Performing Asset: Comparative Position of Public and Private Sector Banks in India, International Journal of Business and Management Tomorrow, Vol.2 (1).
  • Ahmed, JU. (2010). an Empirical Estimation of Loan Recovery and Asset Quality of CommercialBanks, the NEHU Journal, Vol.8 (1)
  • Batra, S. (2003). Developing the Asian Markets for Non-Performing Assets; Developments in India, 3rd Forum on Asian Insolvency Reform, Seoul, Korea
  • Biswas, PK., & Deb, AT. (2005). Determinants of NPAs in the Indian Public Sector Banks: A Critique of Policy Reforms, [Online], URL:oii.igidr.ac.in:8080/dspace/bitstream/2275/131/1/biswasdeb.doc
  • Bloem, M., & Gorter, N. (2001). The treatment of Non Performing Loans in Macro Economic Statistics, IMF Working Paper, WP/01/209.
  • Borbora. (2007). Management of Non-Performing Assets (NPAs) in the Urban Cooperative Banks(UCBs), Reserve Bank of India, [Online], URL: http://www.cab.org.in/Lists/Knowledge%20Bank/Attachments/26/NPA%20MANAGEMENT.pdf
  • Boudriga, A., Taktak, NB., & Jellouli, S. (2009). Bank specific business and institutional environment determinants of nonperforming loans: Evidence from MENA countries, ERF 16th Annual Conference on Shocks, Vulnerability and Therapy, November 2009.
  • Chaudhary, S., & Singh, S. (2012). Impact of Reforms on the Asset Quality in Indian Banking, International Journal of Multidisciplinary Research Vol. 2(1).13-31.
  • Chijoriga, M.M. (2000). The Interrelationship Between Bank Failure and Political Interventions in Tanzania in the Pre-Liberalization Period, African Journal of Finance and Management, Vol.9(1), 14- 30.
  • Collins, N J., & Wanjau, K. (2011). The Effects of Interest Rate Spread on the Level of Non- Performing Assets: A Case of Commercial Banks in Kenya, International Journal of Business andPublic Management Vol. 1(1).
  • Dash, MK., & Kabra, G. (2010). The Determinants of Non-Performing Assets in Indian Commercial Banks: an Econometric Study, Middle Eastern Finance and Economics, Issue 7 (2010).
  • Espinoza, R., & Prasad, A. (2010). Non Performing Loans in the GCC Banking System and theirMacro Economic Effects, IMF Working Paper series, WP/10/224.
  • Fainstein, G. (2011). The Comparative Analysis of Credit Risk Determinants - In the Banking Sector of the Baltic States, Review of Economics & Finance, March 2011.
  • Gopalakrishnan, T.V. (2005). Management of Non Performing Advances, 1st Revised Edition, Mumbai, Northern Book Centre publication,
  • Heid, F., & Kruger, U. (2011). Do Capital buffers mitigate volatility of bank lending? Asimulation study, Discussion Paper Series 2 Banking and Financial Studies N0 03/2011
  • Islam. Shofiqul., M. Chandra, S., & Abdul, M. (2005). Non Performing Loans - Its causes, Consequences and Some Learning, MPRA Paper No. 7708
  • Istrate, E., Gupta,D.D., & Weissburg, P (2007). Toward Developing a Structured Approach to the Diagnosis and Resolution of Nonperforming Loans: The Case of China and India, Review of Policy Research Volume 24, Issue 4, pages 345365, July 2007
  • Karunakar, M., Vasuki, K., & Saravanan, S. (2008). Are non - Performing Assets Gloomy or Greedy from Indian Perspective?, Research Journal of Social Sciences, 3: 4-12, 2008
  • Kumar, B.S. (2005). Non-Performing Assets in Indian Banks, [Online], URL: http://www.indianmba.com/Faculty_Column/FC212/fc212.html
  • Lending and ItsImplications for Monetary Policy, OECD Economics Department Working PaperNo. 107. Michael, JN., Vasanthi, G., & Selvaraju, R. (2006). Effect of Non-Performing Assets on Operational Efficiency of Central-Cooperative Banks, Indian Economic Panorama, Vol. 16(3). 33-39
  • Misra, B.M., & Dhal, S. (2011). Pro-cyclical Management of Banks Non-Performing Loans by the Indian Public Sector Banks, [Online]:http://www.bis.org/repofficepubl/arpresearch201003.08.pdf
  • Muniappan, G. (2002). The NPA Overhang, Magnitude, Solutions and Legal reforms, Reserve Bank of India
  • Murinde, V., & Yaseen, H. (2004). The Impact of Basle Accord Regulations on Bank Capital andRisk Behavior: 3D Evidence from the Middle East and North Africa (MENA) Region, 3rd International Conference of the Centre for Regulation and Competition (CRC) on Pro-Poor Regulation & Competition: Issues, Policies and Practices.
  • O?Brien, P.F., & Browne, F. (1992). A Credit Crunch? The recent Slowdown in Bank Lendingand Its Implications for Monetary Policy, OECD Economics Department Working Paper No. 107. Panta, R., (2007). Challenges in Banking: A Nepalese Diaspora, Socio-Economic Development Panorama, Vol. 1(2), 9 -22
  • Reddy, P.K., (2002). A comparative study of Non Performing Assets in India in the Global context similarities and dissimilarities, remedial measures [Online], URL: http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan013132.pdf
  • Poongavanam. S. (2011). Nonperforming assets: Issues, Causes and remedial Solution, AsianJournal of Management Research, Vol.2 (1).
  • Rajaraman, I., & Vasishtha, G. (2002). Non-Performing Loans of PSU Banks, Some PanelResults, Economic and Political Weekly, Vol.37(5), 2-8.
  • Reserve Bank of India (2010), Trend and Progress of Banking in India
  • Sethi, J., & Bhatia, N. (2007). Elements of Banking and Insurance, 2nd Edition, Prentice Hall India Publications
  • Thiagarajan, S., Ayyappan, S., & Ramachandran, A. (2011). Credit Risk Determinants of Public and Private Sector Banks in India, European Journal of Economics, Finance and Administrative Sciences, Issue 34.
  • Tracey, M., & Leon, H. (2011). The Impact of Non-performing Loans on Loan growth, IMF working Paper.
  • Yadav, M.S. (2011), Impact of Non Performing Assets on Profitability and Productivity of PublicSector Banks in India, AFBE Journal, Vol.4, No. 1

IJTBM
Typically replies within an hour

IJTBM
Hi there 👋

How can I help you?
×
Chat with Us