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Non Performing Assets in Indian Banks

Non Performing Assets in Indian Banks

          
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About the Book

A well-developed banking system is a sine qua non for the economic development of a country. The volume of transactions made by banks indicates the strides made by an economy. It cannot be gainsaid that the banking sector in India has undergone remarkable changes during the last forty years. Since the nationalisation of banks in 1969, the geographical and functional coverage of banks has surged at the rate that is unprecendented in the world. Nationalisation of banks brought about several diversifications, modifications and innovations in the structure and functioning of banks. However, services rendered by banks witnessed major changes only after libralisaion, globalisation and financial sector reforms carried out from the early 1990s. Banking system has now transformed itself into a vibrant financial service sector with many innovative and technology-driven services at their end. Reforms in the banking sector has two distinct phases. The first phase of reforms focused mainly on enabling and strengthening measures, while the second phase of reforms placed greater emphasis on structural measures and improvements in standards of discolsure and levels of transparency in order to align the Indian standards with international best practices. Reforms have brought above considerable improvements as reflected in various parameters relating to capital adequacy, asset quality, profitability and operational efficiency. Unfortunately banks in India continue to face the problem of Non-Performing Assets (NPAs), attribute to factors such as weak debt recovery mechanism, non-realisation of collateral and poor credit appraisal technique. In spite of the significant improvement in the banking sector as a result of reforms, several challenges lie ahead, the most important being the need to bring down the NPAs in banks, especially in the Public Sector Banks (PSBs). Various steps have been taken in this regard since reforms, however, banks need to intensify their efforts to recover their overdues and prevent generation of fresh NPAs.


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Product Details
  • ISBN-13: 9788131312537
  • Publisher: A.P.H. Publishing Corporation
  • Publisher Imprint: A.P.H. Publishing Corporation
  • Language: English
  • ISBN-10: 8131312534
  • Publisher Date: 2012
  • Binding: Hardcover
  • No of Pages: 178

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