Status of non performing assets of Indian banking sector

The increasing rate of non-performing asset has become a serious and deep problem and it is very high in the developing countries like India. NPAs reflects advances for which interest or repayment of principal or both remains unpaid for a period of 90 days. that means the asset of the banks which don't perform any role in getting profit to the organization, such assets are called non-performing assets. NPAs are the primary indicators of credit risk of the banks. the more the NPAs, the lower the performance of the bank. In India NPAs are raising because of faulty lending policy and making compulsion lending to priority sectors by bank; therefore NPAs has become a debate topic today in the Indian banking sector and it needs to be reduced to improve the profitability and efficiency of banks. In this paper an effort has been made to analyze the concept of non-performing assets in Indian banking sector.