A SYSTEMATIC ANALYSIS OF COMMERCIAL BANKS IN INDIA - A STUDY OF NONPERFORMING ASSETS (NPA)

A sound banking industry is imperative to expand the other sectors as it advances loans to smoothly carry on their business. However, the banking sector these days is overburdened with voluminous Non-Performing Assets (NPAs), which influence not only the profitability and liquidity of the bank but also its reputation. In the credit stream there has been an extension to various areas of the economy, such as the market, manufacturing, administrations and agribusiness. But at the same time, the Indian banking sector has seen an increase in the Non-Performing Assets (NPAs). NPA has strong effects on bank profitability and net worth. Banks need to take steps to get the Non-Performing Assets down. The Gross NPA represents the efficiency of bank lending, and the Net NPA represents the banks' real burden. This paper makes an attempt to focus on the trends of Gross NPA, Net NPA, the impact of NPAs, and ongoing policy projections to minimize NPAs