Strategic approach to management of NPAs – A study with reference to Lakshmi Vilas Bank Limited, Karur Tamilnadu, India

The Reserve Bank of India (RBI) has initially issued circulars regarding prudential norms as to how to identify non-performing assets (NPAs), finalise Asset Classification and make provisioning and income recognition in April 1, 1992. With these prudential norms, RBI introduced the historic concept of Non-Performing Assets (NPAs). The Narasimham Committee (1991–1998) emphasized the need for management of NPAs in banks to improve asset quality and make them self sufficient and capable to compete successfully in changing global environment.