Title: Analysis of underlying causes for npas in Indian scheduled commercial banks

Non-performing assets of banks have become a major concern in India, with an almost regular periodical occurrence of very large value credit defaults/frauds adding to the already humongous levels of NPAs in Banks (especially Public-Sector Banks). They are a direct reflection on the performance of banks. A high level of NPAs affects the profitability, net-worth and liquidity of banks, in addition to posing threat on quality of asset and pushing them to the brink of insolvency. Banks have to make mandatory provisions, which reduces the overall profits and shareholders’ value. This problem is not only affecting the banks but also the economy as a whole. Post the revelation of the PNB-Neerav Modi Scam and the Rotomac default, it has now become inescapable for the Government of India to initiate harsh corrective steps to control and reduce the NPAs to improve the financial health of the banking system and the Indian economy. This research paper is an attempt to study what are NPAs, various factors contributing to creation of NPAs andcritically identify causes of consistently rising NPAs and causes for failures of the preventive steps taken by the various agencies.