1Associate Professor & (Ex-Officiating Principal) Faculty of Commerce and Business Administration, M.M.H College, Ghaziabad, Uttar Pradesh, India
2Research Scholar, CCS University, Meerut
3Assistant Professor, IME College, Sahibabad, Ghaziabad, Uttar Pradesh, 201005, India
*Corresponding Author: Mr. Ramesh Kumar, Research scholar, CCS University, Meerut and Assistant Professor, IME College, Sahibabad, Ghaziabad, Uttar Pradesh, 201005, India. E-mail: kumarramesh097@gmail.com
Online published on 31 January, 2020.
A strong banking sector has always been important factor for economy to flourish. Once the banking sector fails it always has negative effect on the other sectors. Non-performing assets have always been one of the major concerns in India. Banks performance is reflected by its NPA level. The large number of NPA erodes the value of any assets in banks and it also suggests that number of credit defaults in the banks have increased and net worth of banks have decreased. The growth in NPA level increases the levels you have to set for provisions which overall decreases the shareholders ’value and profits too. In all over world problem of increasing Non Performance Assets has been discussed many times. In India heath of industry and state can be easily defined by as to how the level of NPA are increasing in this country. Whole economies are being affected by this problem of NPA. This paper deals in such NPA problems and understanding the causes of it and also discuss about magnitude and causes of NPA problem over the last 3 years and discuss about its effect on economy.
Non-performing assets, banking sector, high level, credit Defaulter
