The growth and development of any economy depends upon its stable and sound banking system. Due to the several financial crises observed in different countries, risk management has evoked much interest among the regulators and scholars in recent times. This paper is a modest attempt to examine the Non-Performing Assets (NPAs) of Indian commercial banks from different dimensions. Secondary data on 40 listed Indian commercial banks were collected from 'Capitaline Plus' corporate database for a period of 10 years from 2009 to 2018. The findings of the study indicate that there is an increasing trend of both gross and net NPA ratios of Indian scheduled commercial banks over the years during the study period. The role of big corporate borrowers in this accumulation of NPAs is very important. In this respect, the study finds that the performance of Public Sector Banks (PSBs) (both large and small banks) was very serious in respect of bad loans as in comparison to Indian Private Sector Banks (PrSBs). Overall the results indicate that the quantum of NPAs is an alarming factor for stability of Indian commercial banks in general and PSBs in particular. There is a need to introduce further reformative steps to manage the bad loan portfolio of Indian commercial banks and to build a resilient banking system.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.