NPAs in India: Composition and Recovery

Widespread of Non-Performing Assets (NPAs) in Indian banking system is major challenges in the front of central bank and the Government. The main objective of the study is to analyze trends and composition of NPAs and overview the recovery channels of NPAs in India. Due to increasing burden of Non-Performing Assets banking sector is facing problem of credit crunch. The nature of study is descriptive and analytical. Secondary data have been used for analyzing the concept of NPAs. It is found that the growth of NPAs has increased very rapidly since 2014 and the ratio of the non-priority sector is more than priority and the public sector. During the 12th five-year plan, 12.17 percent of NPAs was recovered by banks through three different channels respectively Lak Adalats, DRTs, and SARFAEST Act.