Article
A Study on Management of NPA's in Indian Scheduled Commercial Banks
Non-Performing Assets (NPAs) have emerged as one of the major challenges affecting the stability and profitability of the Indian banking sector. The growth of NPAs reduces the efficiency of banks, weakens financial performance, and adversely impacts the overall economic development of the country. This study focuses on the management of NPAs in Indian Scheduled Commercial Banks and examines the causes, trends, impact, and recovery mechanisms associated with NPAs. The research highlights how factors such as poor credit appraisal, economic slowdown, willful defaults, and ineffective monitoring contribute to the rise of NPAs in banks. The study also analyzes various measures adopted by banks and regulatory authorities like the Reserve Bank of India and the Government of India to control and recover NPAs, including the implementation of the Insolvency and Bankruptcy Code (IBC), SARFAESI Act, Debt Recovery Tribunals, and asset reconstruction companies. Both public sector and private sector scheduled commercial banks are considered to evaluate their comparative performance in managing bad loans. The findings of the study indicate that effective credit risk management, timely recovery measures, technological monitoring systems, and strong regulatory policies play a significant role in reducing NPAs and improving the financial health of banks. The study concludes that proper management of NPAs is essential for maintaining banking stability, increasing profitability, and strengthening the confidence of investors and customers in the Indian banking system.
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