A Study of Non-Performing Assets of Commercial Banks

The Indian banking sector has been facing serious issues of raising Non- acting Assets (NPAs). The NPAs growth includes a direct impact on profit of banks. Non- acting assets are one in all the foremost issues for scheduled business banks in India. The recommendations of Narasimham committee and Verma committee, some steps are taken to resolve the matter of previous NPAs within the balance sheets of the banks. It continues to be expressed from each corner that there has seldom been any systematic analysis of the simplest means of braving the matter. There looks to be no accord within the correct policies to be followed in breakdown this drawback. NPAs replicate the performance of banks. A high level of NPAs suggests high chance of an outsized variety of credit defaults that have an effect on the profit and net-worth of banks and additionally erodes the worth of the quality. NPAs have an effect on the liquidity and profit, additionally to movement threat on quality of quality and survival of banks. The matter of NPAs isn't solely moving the banks however additionally the total economy. Indeed high level of NPAs in Indian banks is nothing however a mirrored image of the state of health of the business and trade. It‟s necessary to bring down NPAs to boost the money health within the industry. An effort is created during this paper to know terrorist group, the standing and trend of NPAs in Indian scheduled business banks, the factors tributary to NPAs, reasons for prime impact of NPAs on scheduled business banks in India and recovery of NPAS through varied channels.