Impact of Non Performing Assets on Banking Industry
: The Indian Perspective *Dr. Rajesh Rathore
In the developing economies, Banking and Financial part assumes enormous part in economic improvement. In India banks are confronting enormous issue of Non-Performing Assets (NPAs). The acquiring limit and productivity of the banks are fundamentally influenced due to the NPAs nearness. Notwithstanding that non-execution or non-receipt of premium and chief blocked banks cash as assets and is not accessible for further utilization of saving money business and in this way the net revenue of the banks goes down. In this association bank must mindful of the issues and recuperation enactments of NPAs. So it is vital to trim down NPAs to enhance the monetary wellbeing in the keeping money framework. In this paper, an endeavour has been made to discover the different elements in charge of the gigantic NPAs. Year wise comparison of the NPA s of leading banks is also done. Other than this causes and effect of NPAs are additionally distinguished and a few recommendations are given to lessen the NPAs of the banks.
Keywords: Non Performing Assets, Economic Development, Banking & Financial Sector
*HOD & Associate Professor, Commerce & Management Department ,Madhav University, Mount Abu, Sirohi (Rajasthan)
A Research paper on Impact of Non Performing Assets on Banking Industry
: The Indian
Assets that are excluded during the Medicaid qualification process are referred to as non-countable assets. Owning these assets will not affect Medicaid eligibility. Primary non-countable assets include a primary home, many household goods and personal effects, a single vehicle, and funeral/burial funds and spaces.
Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and
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From 2011-2014, the total non-current assets have decreased from 79% to 78% of total assets, whereas the total current assets have increased from 21% to 22%. It is to be noted, that since the total assets are the sum of non –current and current assets, the changes are compensating each other and keeping it at
The main objective of this study is to evaluate liquidity and profitability position of the firm for 5 years, to analyze the financial condition of State Bank of India by applying selective trend values, to predict the financial health and viability of the component of cash and fund flow statement and to evaluate the working capital position and its requirement in near future.
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Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2005). Bank-specific, industry-specific and macroeconomic determinants of bank profitability (32026). Retrieved from Munich Personal RePEc Archive website: http://mpra.ub.uni-muenchen.de/32026/1/MPRA_paper_32026.pdf
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The quality of Indian banks’ assets is likely to deteriorate over the next two years. This will be driven by the slowdown in the economy, and by the aging of loans made in recent years. The NPAs are considered as an important parameter to judge the performance and financial health of banks. The level of NPAs is one of the drivers of financial stability and growth of the banking sector. The Financial companies and institutions are nowadays facing a major problem of managing the Non Performing Assets (NPAs) as these assets are proving to become a major setback for the growth of the economy. NPAs in simple words may be defined as the borrower does not pay principal and
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