A Study of the Non-Performing Assets (NPA) of Banks under Prompt Corrective Action Framework in India


The Indian banking industry is the major industry that directly and indirectly influences other industries and also the economy of our country. It plays a vital role in the development of financial sector of the country. One of the important factors which indicate the soundness of the banking sector is the level of NPAs. NPA affects the profitability of the banks directly. The level of mounting NPAs in recent years has increased drastically, and it has made RBI impose stringent corrective actions against banks and bring them under Prompt Corrective Active (PCA) framework. This paper attempts to study the NPA for a period of five years for the banks under PCA framework and give suggestions to reduce NPAs.

Volume 11 | 05-Special Issue

Pages: 1425-1436