Advanced Search
MyIDEAS: Login to save this article or follow this journal

Non-performing Assetsin Public Sector Banks:An Investigation

Contents:

Author Info

  • B Krishna Reddy
  • P Premchand Babu
  • V Mallikarjuna
  • P Viswanath

Abstract

Indian banking has made a significant progress after nationalization especially in three aspects: Branch expansion, deposit mobilization and loan maximization. Among these, monitoring of loans took a back seat in an era of mass banking and social banking. In the changing scenario of the operations of Public Sector Banks (PSBs), Non-performing Assets (NPAs) have been the most vexing problem faced by PSBs. The Reserve Bank of India (RBI) and Government of India (GoI) have initiated various measures to curb NPAs in the post-financial sector reforms. But PSBs are still unable to solve the problem. In the liberalized scenario, the continuation of the NPAs is a menace for the survival of the banks. After over a decade of implementation of financial sector reforms and prudential norms, there is a need for a systematic analysis of NPAs. In this milieu, this article is an investigation of the trends in NPAs, sectoral composition of NPAs, asset quality diagnosis and the scenario of NPAs at the bank level. This study reveals that the gross and net NPAs have gone down gradually from 23.2% and 14.5% from 1993-94 to 7.8% and 3.0% in the year 2003-04, showing the strong commitment of PSBs towards reduction and management of NPAs. The quality of portfolio of the PSBs has improved quite impressively over the period. In a nutshell, NPAs have been reducing in the PSBs as a whole due to the effectiveness of various measures initiated by RBI and GoI. To survive and compete with private and foreign banks, it is crucial for the PSBs to clean up their balance sheets by increasing the equity capital; and bring changes in the attitude of the bankers and borrowers both in the present and the future

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by IUP Publications in its journal The IUP Journal of Financial Economics.

Volume (Year): IV (2006)
Issue (Month): 1 (March)
Pages: 69-79

as in new window
Handle: RePEc:icf:icfjfe:v:04:y:2006:i:1:p:69-79

Contact details of provider:

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:04:y:2006:i:1:p:69-79. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.