Management of Non-Performing Assets in Indian Public Sector Banks: A Critical Analysis

Non-Performing assets (NPAs) in the Indian Banking system have assumed astronomical dimensions through the introduction of the concept of asset classification, income recognition and provisioning norms by Reserve Bank of India to assess the credit risk of a bank. High level of NPAs in banks has attracted public as well as foreign financial institution to analyse the reasons for it. In this paper, an attempt has been made to find out the various factors responsible for the huge NPAs. Further the different characteristics of NPAs on the basis of industry have been analysed.