EXECUTIVE SUMMARY The most important problem that the Indian banks are facing is the problem of their NPAs. It is only since a couple of years that this particular aspect has been given so much importance. The banks have to overcome these difficulties properly in order to effectively counter the competition faced by the foreign banks. With the framing of laws as per international standards and setting up of Debt recovery tribunal we can say that steps have been taken in this direction. Banks
INTRODUCTION • What is NPA • Basel norm I • Evolution of NPAs 8 – 12 5. LITERATURE REVIEW • Banking theory –history and banking system • Banking composition • Banking today and tomorrow 13- 33 6. COCEPTUAL ANALYSIS • Indian banking system • The problem of non performing assets • Reasons for turning an asset in NPA • Trend in NPAs 34 – 52 7. FINDINGS AND CONCLUSIONS • Impact of NPAs • Difficulties with NPA • Key structural changes • Reporting format of NPA 53- 60 8.
requirements will be more closely aligned with the underlying risks in banks’balance sheets. One of the important features of the revised framework is the emphasis on operational risk. NPA Management by Banks The Reserve Bank and the Central Government have initiated several institutional measures to contain the levels of NPAs. These include Debt Recovery Tribunals (DRTs), Lok Adalats (people 's courts), Asset Reconstruction Companies (ARCs) and Corporate Debt Restructuring (CDR) mechanism. Settlement