A Statistical Analysis of Non-Performing Assets and the 3 Effectiveness of Various Recovery Channels in SCBs

The banking industry serves as a stanchion in the growth of the nation. It mobilises deposits and gives credit to variegated sectors in the country. This sector collects surplus funds from customers and channelizes the same in the form of loans. As it has a vital role in the growth of other sectors, it needs to be flourishing rather than unthriving. Considering the latter, this research paper attempts to focus on one of the major cause to be blamed, for the crumbling state of the Indian banking sector today i.e the Non-Performing Assets (NPAs), its link with certain factors impacting the financial health, and its recovery in the context of SCBs in India. The paper has four parts. The first part is all about brief discussion on NPAs and its various recovery channels. The second part presents a contrast between Net NPA and Gross NPA and further linking it with the profits. The third part dwells on the recuperation of NPAs through Lok Adalats, Debt Recovery Tribunals & SARFAESI act. Finally this paper is concluded with suggestions on avoidance and management of NPAs.