Management of Non-performing Advances
Management of Non-performing Advances

Author: T. V. Gopalakrishnan

Publisher: Northern Book Centre

Published: 2004

Total Pages: 220

ISBN-13: 9788172111823

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The book deals with the problem of Non-Performing Advances (NPAs) in public sector banks and its impact on the banks' books, banking and financial system of the economy. Recognizing the inevitable and festering nature of the problem, the author has come out, inter alia, with a statistical model as an innovative, simple and practical solution to contain NPA formation to ensure a strong balance sheet for banks and improved image of the borrowers. The author claims that the solution will prove to be a win-win situation for all stakeholders of banks including the economy, and its constituents Government, shareholders, depositors, borrowers, employees and others. Salient Features Changes brought about in banks under Banking Sector Reforms. • Emergence of NPAs in banks. • Problem of NPAs: Its causes and effects. • Performance of Public sector banks on management of NPAs. • Impact of NPAs on the economy, banks’ balance sheets and profit and loss accounts. • Suggestions to contain NPAs from the angles of banks, borrowers, Government, Regulator and others. • A Statistical Model developed to contain formation of NPAs, strengthen banks' balance sheets and develop an emotional rapport between banks and borrowers.

Management of Non Performing Advances a Study with Reference to Public Sector Banks
Management of Non Performing Advances a Study with Reference to Public Sector Banks

Author: Gopalakrishnan

Publisher: Infotech

Published: 2023-02-06

Total Pages: 0

ISBN-13: 9784320242456

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This describes Indian banking well. Competition, mergers, IT, new products, markets, and rules change banking. Changes in interest rates, currency rates, commodity prices, lenders, borrowers, and government self-interest necessitate financial innovation to handle current and emerging challenges. Our financial sector, which underpins the economy, has struggled to adapt to developments. One explanation for this is banks' NPAs. A bank loan or advance is "non-performing" after 180 days of late interest or principal payments. Advances that don't generate revenue and won't be repaid impair banks' ability to act as middlemen, one of their main functions (mobilising savings and providing finance for investments). A strong economy requires a healthy banking system.

A Study of Non Performing Assets Management with Reference to Select Indian Public Sector Banks and Private Sector Banks
A Study of Non Performing Assets Management with Reference to Select Indian Public Sector Banks and Private Sector Banks

Author: Dr Preeti Sharma

Publisher:

Published: 2017

Total Pages: 15

ISBN-13:

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The asset quality of banks is one of the most important indicators of their financial health. It also reflects the effectiveness of banks' credit risk management and the recovery environment. It is important that the signs of distress in all stressed accounts are detected early and those which are viable are also extended restructuring facilities expeditiously to preserve their economic value. (RBI/2012-13/208). The Indian banking sector has been facing severe problems of raising Non- Performing Assets (NPAs). The NPAs growth directly affects the profitability of banks. The problem of NPAs is not only affecting the banks but is affecting the economy as a whole. In fact high level of NPAs in Indian banks is nothing but a reflection of industry and trade. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets. (Olekar and Talawar, 2012). NPAs do not just reflect badly in a bank"s account books, they adversely impact the working of economy. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of select public sector and private sector banks and attempts to compare analyze and interpret the NPA management from the year 2010 -2015. On the conceptual side, it gives an overview of NPA, various types of NPA and its cause. The tools used in the study are Least square method and ANOVA. The findings reveals the percentage of Gross NPA to Gross advances is increasing for public banks, the Estimated Gross NPA for 2014-15 is also more in public banks as compared to private banks and from the ANOVA test, it is concluded Ratio of Gross NPA to Gross Advances for public sector and private Sector Banks does not have significant difference between 2010 to 2015.

Managing Non-Performing Assets in Indian Public Sector Banks
Managing Non-Performing Assets in Indian Public Sector Banks

Author: Sk Mujibar Rahaman

Publisher: Exceller Books

Published: 2022-09-30

Total Pages: 189

ISBN-13:

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The book provides a comprehensive coverage of a burning issue faced by the banking industry in India, namely, the problem of Non-Performing Assets (NPAs). The book elucidates the theoretical exposition of NPAs in the first instance. It also demystifies the trends in movement of NPAs and thereby expounds efficiency in NPA management by Public Sector Banks, PSBs, in India. Recognising the inevitable and festering nature of the problem, the author has come out, inter alia, with a data-driven approach to measure financial performance and thereby assessed impact of the problem on different performance areas of banks. The book also investigates the major factors causing the problem of NPAs of the Indian PSBs. Finally, the author provides certain recommendations for the banks and the government that can help manage NPAs and strengthen the banking industry in the country.

MANAGEMENT OF NON PERFORMING ASSETS IN PRIORITY SECTOR ADVANCES OF PUBLIC SECTOR BANKS IN KARNATAKA
MANAGEMENT OF NON PERFORMING ASSETS IN PRIORITY SECTOR ADVANCES OF PUBLIC SECTOR BANKS IN KARNATAKA

Author: Suresh B

Publisher: Lulu.com

Published: 2013-07-16

Total Pages: 89

ISBN-13: 1304235238

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This study is mainly confined to Mandya District in the state of Karnataka. The main focuses of the study is on the problem of NPAs in Canara Bank only and also see how the effective measures has enabled the banks to raise their profitability. The study also focused on growth and performance of Canara Bank in Mandya District.

Management and Control of Non Performing Assets (NPA) in Indian Public Sector Banks
Management and Control of Non Performing Assets (NPA) in Indian Public Sector Banks

Author: Dr. S K. Misra

Publisher:

Published: 2016

Total Pages: 12

ISBN-13:

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India's legal system has traditionally been friendly towards borrowers and famously inefficient and slow in the recovery of loans and interest. As a result, once a bank provides a loan or advance to a borrower, it has very little bargaining power in terms of calling the loan back or getting its hands on assets that formally securitize that particular loan or advance. In India, the whole banking sector and particularly the public sector banks till recently suffered from considerable amount of non-performing assets (NPAs). The paper studies the effectiveness of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 in controlling and solving the problem of non-performing assets of public sector banks. The study found that NPAs in public sector banks have been declining continuously from Rs. 56,156.43 crores (10.67% of Gross Advances) in 2001-2002 to Rs. 55,171.48 crores (2.31% of Gross Advances) in 2009-2010 since the implementation of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. There is a decline of 80.10% in non performing assets in public sector banks as a whole during the period of study. The study revealed that the enactment of SARFAESI Act was highly successful and effective in reducing and controlling the amount of non- performing assets of public sector banks. The study also recommends Indian public sector banks should continue to remain focused in their recovery efforts of non-performing assets, in order to maintain the positive and effective trend of improving the quality of their assets.

Management of Non-Performing Assets in Banking Sector
Management of Non-Performing Assets in Banking Sector

Author: Nalla Bala Kalyan

Publisher:

Published: 2020-03-03

Total Pages: 104

ISBN-13: 9789975341110

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An asset of a bank (such as a loan given by the bank) turns into a Nonperforming asset (NPA) when it ceases to generate regular income such as interest etc for the bank. In other words, when a bank which lends a loan does not get back its principal and interest on time, the loan is said to have turned into an NPA. While NPAs are a natural fall-out of undertaking banking business and hence cannot be completely avoided, high levels of NPAs can severely erode the bank's profits, its capital and ultimately its ability to lend further funds to potential borrowers. Similarly, at the macro level, a high level of Nonperforming Assets means choking off credit to potential borrowers, thus lowering capital formation and economic activity. So the challenge is to keep the growth of NPAs under control. Clearly, it is important to have a robust appraisal of loans, which can reduce the chances of loan turning into an NPA. Also, once a loan starts facing difficulties, it is important for the bank to take remedial action. The study focus on Asset classification and trends of NPAs, compare sector wise NPAs during branch expansion, predict and analyze NPAs by Markov's transition matrix and its application to loan tracking, impact of NPAs on the profitability and productivity of banks, Recovery methods, loan administration activities and factors influencing NPAs from Banker's & Borrower's perspective in selected banks.

Bank Asset Quality in Emerging Markets
Bank Asset Quality in Emerging Markets

Author: Mr.Reinout De Bock

Publisher: International Monetary Fund

Published: 2012-03-01

Total Pages: 27

ISBN-13: 1475592302

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This paper assesses the vulnerability of emerging markets and their banks to aggregate shocks. We find significant links between banks' asset quality, credit and macroeconomic aggregates. Lower economic growth, an exchange rate depreciation, weaker terms of trade and a fall in debt-creating capital inflows reduce credit growth while loan quality deteriorates. Particularly noteworthy is the sharp deterioration of balance sheets following a reversal of portfolio inflows. We also find evidence of feedback effects from the financial sector on the wider economy. GDP growth falls after shocks that drive non-performing loans higher or generate a contraction in credit. This analysis was used in chapter 1 of the Global Financial Stability Report (September 2011) to help evaluate the sensitivity of banks' capital adequacy ratios to macroeconomic and funding cost shocks.

Non-Performing Assets in Public Sector Commercial Banks - A Retrospect
Non-Performing Assets in Public Sector Commercial Banks - A Retrospect

Author: Venkataramanaiah Malepati

Publisher:

Published: 2016

Total Pages:

ISBN-13:

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The present study emphasizes on the management of nonperforming assets in public sector commercial banks in India by covering asset classification norms, identification of non-performing assets, provisioning against advances etc. Public sector commercial banks provide finance to needy covering various sectors including priority, no-priority and public sectors. In this junction, the study is intended to trace the movements and recovery of non-performing assets in public sector commercial banks during 2006-2011 with the backdrop of financial crisis happened during 2008.

Research on Npa Management
Research on Npa Management

Author: Vandana Joshi

Publisher: LAP Lambert Academic Publishing

Published: 2012

Total Pages: 124

ISBN-13: 9783847334552

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Advance is heart and recovery is oxygen for the bank and for the bank to survive it is necessary to give advances and recover the amount at the appropriate time.After the global financial turmoil in 2008, Indian banks begin the new year with a lurking fear that their Non Performing Assets (NPA) would go up with their portfolios coming under severe stress. This book contains research work done on the NPA management in Co-operative Banking sector.It covers various aspects like credit policy, NPA management, recovery management, etc. It contains identification and concept of NPA, various stages of non-collectible financial assets and suggestions for effective recovery management.This book will help all the readers in understanding the critical problem of NPA in banking sector.It will be helpful to all the students who want to do research in the same field