Expedient measures to combat the malignant repercussions of the non-performing assets (NPAs) on the Indian banking sector

The hustle caused by increasing NPA not only affects the banks but are also detrimental to the economy as a whole. Reduction in NPAs indicates that banks have strengthened their process of credit appraisal. Contrary to this, the high levels of NPA of the Indian banks can be essentially termed as the reflection of the condition of trade and industry in India. It has become quintessential to curb the ever-growing NPAs for betterment of the financial condition of the banking system. After the government's recent drill of demonetization of high-value currency notes, a revival in growth and development was much expected. If this crisis deepens any further, the hopes of such a revival stand dampened. This system further tends to affect the credibility of the financial system. Consequentially, there is an expectant adverse impact on the credit rating of the country, curbing foreign inflow of capital and investments into the economy, further fiddling the growth rate thereby adding to already-aberrant fiscal deficit, making the nation building task more formidable. The present need of the economy is the strong banking system backed by low-cost credit. The overhaul of the balance sheets of the banks is the dire need of the hour. Through this research article, the authors have tried to put light on various aspects of NPAs, with a special focus on active steps that need to be taken to curb the stressed asset menace. A special focus has been given to the feasible measures and suggestions which would prove beneficial in increasing the credibility of banks. Another dimension of this research article includes reviews by credit rating agencies; the impact and implications of NPAs; a case study on private and public sector banks; the combating power of IBC1, new NPA Ordinance2 and other NPA contracting measures; concluded by personal suggestions and recommendations.