An Analysis of Non-Performing Assets of Commercial Banks in India

Banking sector is one of the constituents of financial system of the nation. Economy sustenance can be measured based on the sustenance of the banking sector of a particular nation and the prosperity of the nation's economy depends on the banking system. Here, in the banking system a perspective Non Performing Assets (NPAs), this has been threatening the harmony of the banking system operations. At present NPA in the banking sector is debate topic because NPA is increasing year by year particularly in nationalized banks The Gross Non-Performing Assets (GNPAs) of Nationalized Banks as on June 2012 were Rs.73, 038 crore which amount to 2.94% of Gross Advances. Since, the banks are acting like a agent between the savers and the seekers they should be very cautious in channelizing deposits to needy people as loans and advances. In this study researcher has made an attempt to analysis the Non Performing Assets of the Commercial banks of India for a period of fifteen years starts from 1996–97 to 2011–12. Findings of the study reveal that year by year NPAs of Commercial Banks are increasing and many internal and external factors are insisting the growth of NPAs in this sector. Researchers suggest to take corrective actions to get control over the NPAs of commercial Banks.