Impact of non-performing assets on the profitability in Indian scheduled commercial banks

Nachimuthu, Kavitha; Veni, Muthukrishna

doi:10.5897/ajbm2018.8683

Cited by 6 publications

(4 citation statements)

References 6 publications

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“…The causes of NPAs include disaster, sickness of the industries, in effective recovery process, business cycle, lending policy, absence of monitoring and follow up loan and managerial problems. The proportion of nonperforming assets on selected variables is identified with the help of the following ratios: i) Ratio of Gross NPA to Gross Advances; ii) Ratio of Net NPA to Net Advances; iii) Ratio of Gross NPA to Total Assets; iv) Ratio of Net NPA to Total Assets (Kavitha & Muthukrishna, 2019: 128-1129.…”

Section: Research Approachesmentioning

confidence: 99%

“…Table (8) shows the Relation between Net NPA and ROE. Table (8): Relation between Net NPA and ROE  in 2018, the percentage increases to 27.8%, in 2019 it decreases to 24%, and in the last year it suddenly increases to 57%.  Multiple R equal 0.3 establishes there is a positive relationship between the variables.…”

Section:  the Positive Correlation Coefficient Between Return On Equ...mentioning

confidence: 99%

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Impact of Non-Performing Assets on the Profitability of Banks: With reference to Cihan Bank

Ahmed¹

2023

Tikrit J. Admin. Econ. Sci.

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Banking services are subject to a variety of hazards, including credit quality, liquidity, interests’ risk, market risk, operating risk, and management risk. The greatest exceptional risk is default on a loan. The level of non-performing assets or the redemption loans determine a bank's sound financial status (NPAs). And that the rise in nonperforming assets (NPAs) necessitated more judgment, resulting in poorer bank profitability overall. The main thing to remember is that decreasing the number of nonperforming assets (NPAs) is necessary for banks to increase their profitability. The impact of nonperforming assets (NPAs) on Cihan Bank's profitability is investigated in this research. This was done in order to achieve the objective of the study represented in evaluating the nonperforming assets of Cihan Bank. And their impact on profitability. As well as to determine the relationship between net profit and total net NPA, ROA, and ROE. Cihan Bank's collected from the annual report are used in this study, which spans four years from 2017 to 2020. The correlation coefficient was used to assess the data. The study discovered that the NPA characteristics and also the profitability variables have a substantial negative relationship.

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Section: Research Approachesmentioning

confidence: 99%

Section:  the Positive Correlation Coefficient Between Return On Equ...mentioning

confidence: 99%

Impact of Non-Performing Assets on the Profitability of Banks: With reference to Cihan Bank

Ahmed¹

2023

Tikrit J. Admin. Econ. Sci.

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“…In some cases, the central bank and the government jointly took initiatives to resolve NPA problems by injecting capital into the banking sector, providing financial support such as stimulus packages, strengthening regulations, and improving the monitoring system. India was a prominent example in this group (Nachimuthu & Veni, 2019).…”

Section: A Debate Between Two Economistsmentioning

confidence: 99%

I Was Learning Economics at the Cost of the Economy

Majumder¹

2021

TEL

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COVID-19, a virus of the size of 0.12 microns, had crippled the global economy with 19.14 million people infected as of April 15, 2020, increased to 37.11 million as of October 11, 2020 as per the COVID-19 Weekly Epidemiological Update published by World Health Organization (WHO). The COVID-19 count as of March 23, 2021 was more than 122 million, suppressing the last year's rate of growth of the same. Economic activities across the globe had been stalled after February 2020. The world has been caged in a Great Lockdown. For the vast majority of people, this has been the biggest economic upset of their lives. There were many causes of recession delineated in the contemporary research papers. Nevertheless, too many causes of the crisis, too many research papers, so many techniques for optimization and too many surveys, etc., frequently divert the focus. We should not lose focus in the sea of numerous causes of recession. Therefore, the objective of the present paper is more specific: "Was conservative/defensive stance in the risk management in the regulatory policymaking post-global financial recession (2007-10) foreboding or worthy?". The subprime crisis of 2007-08 and the economic recession that followed and many significant economic and socio political events after 2010, e.g., the sovereign debt crisis in Greece, European credit crisis, Brexit, the Venezuelan hyperinflation in 2014, China-United State trade war (July 6, 2018-present), etc., had left many economists on the defensive stance in the policy research/policy prescriptions. We can't deny that scholars belonging to pre-and post-global financial crisis (2007)(2008)(2009)(2010) generally possessed opposite views. For example, Berkowitz and O'Brien (2002) argued that 99th percentile VaR forecasts were conservative; however, recommendations by the BASEL committee of banking supervision (BCBS) since 2010 were 99th and 99.9th percentile VaR forecasts. It is difficult to judge if economic policies post-global financial crisis were impartial or for *Views expressed in the paper are those of the author and do not represent the views of the organisation that the author belongs to.

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“…A researcher has reached the conclusion that NPAs and ROA have a connection that is unfavorable to one another (Manu & Maheshwari, 2018). (Almaqtari et al, 2019;Kavitha & Muthukrishna, 2019) explain that the amount of nonperforming loans (NPA) in public and private sector banks, as well as the effect of NPA on profitability, were the foci of the research project. A researcher has gathered data from 10 financial institutions that have the largest NPA, and in the statistical tool that they have employed, they have utilized standard deviation and a liner regression model.…”

Section: Introductionmentioning

confidence: 99%

A Case Study on Gross and Net Non-performing Assets of State bank of India

Jayantilal¹

2022

jommerce

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The main objective of present study is to examine Gross non-performing assets and net non-performing assets of State Bank of India. For the present case study researcher has select five years period of study started from 2015-16 to 2019-20. Researcher has selected five NPA ratios; Gross NPA, Net NPA, Provision coverage ratio, Cash deposit ratio and Interest spread ratio. Chi- square test; time series analysis (Manually calculated) is applied on selected ratios of non-performing assets of State Bank of India. The study found out that there is no significant association in all selected ratios of state bank of India. It means in all the selected financial years ratios of non-performance assets is similar and null hypothesis is accepted. In this era banking sector has major suffer from non-performing assets. State bank of India is oldest bank with higher market capital. The paper investigates NPA of State Bank of India. This study helps to investors & managerial board for decision making.

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Impact of non-performing assets on the profitability in Indian scheduled commercial banks

Cited by 6 publications

References 6 publications

Impact of Non-Performing Assets on the Profitability of Banks: With reference to Cihan Bank

Impact of Non-Performing Assets on the Profitability of Banks: With reference to Cihan Bank

I Was Learning Economics at the Cost of the Economy

A Case Study on Gross and Net Non-performing Assets of State bank of India

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