Management of Non-Performing Assets: A Study of Public Sector Banks

This study emphasizes on management of non-performing assets in the perspective of the public sector banks in India under strict asset classification norms, recovery procedures. An attempt is made in the paper that what is NPAs? The magnitude of NPAs and their impact, on public sector banks operations. Non-performing Assets are important parameter in the analysis of financial performance of a bank as it results in decreasing margin and higher provisioning requirement for doubtful debts. The reduction of non-performing asset is necessary to improve profitability of banks and comply with the capital adequacy norms as per the Basel Accord. This study traces the movement of the nonperforming assets present in public sector banks of India by analyzing the financial performance of the banks with respect to key performance indicators and management of the non-performing assets under the purview of new policy actions and regulatory compliance of the Reserve Bank of India.