Konatham Vinodhitha, Dr Chandra Sekhar Pattnaik 02 7(1) A nonperforming asset in a narrow sense may be defined as an asset which does not directly contribute to the corporate profits or yield any positive returns This may be appropriate when applied to loans and advances However there are other assets such as cash balances held which are certainly require for business operations but do not yield any direct return Although banks cannot completely do away with such non performing assets from their books they have to manage to keep them at a minimum possible level to maximize profits Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026