An Empirical Analysis of Non-Performing Asset in Selected Banks of India

Abstract

The profitability of the Indian banking industry is directly impacted by the non-performing assets. It is one of the main issues facing India's banking sector. The execution of several committees' recommendations and the government of India's ongoing attempts have had a favourable influence on the economy by lowering the NPA of the Indian banking sector. Due to strategic planning by the Reserve Bank of India and the finance departments, it began gradually decreasing as a percentage of net advances after 2018. The purpose of this paper is to evaluate the effects of NPA on bank profitability and the techniques used by banks to reduce NPA. The study is based on secondary data that was collected from a variety of bank audited reports, yearly reports from the RBI, websites, etc. It has been determined that the NPA is gradually shifting into a declining mode following the adoption of RBI directives and modification of NPA management strategy.