Critical Analysis Reasons of Non-Performing Assets: An Analytical Study

Abstract

“When a person delays the payment of the loan or an amount which was due on him through the delay in payment in either interests or instalments or principal amount, that particular loan or amount is termed as Non-Performing Asset.” The stability of a nation's banking sector is best gauged by the its margin of non-performing assets (NPAs) in the total assets. This study's objective is to examine the growing trend of the NPA in the sector in order to determine the specific contributions made by the major banks. Banks in the private sector’s NPA rise is not as quick as that of banking institutions, SBI, and its affiliates, according to study. Due to the ineffective management of the problem of subprime loans by the banking institutions and the affiliate banks of SBI, the rise in such loans has been very significant.