@article {3803, title = {IMPLICATIONS OF NON-PERFORMING ASSETS IN THE BANKING SECTOR}, journal = {IIFSTEG2014}, year = {2014}, month = {10/2014}, publisher = {Maharani Lakshmi Ammanni College For Women}, address = {Bangalore}, abstract = {
NPA means an asset or account of borrower, which has been classified by a bank or financial\ institution as sub-standard, doubtful or loss asset, in accordance with the directions or guidelines\ relating to asset classification issued by RBI. NPA are those loans given by a bank where the\ borrower defaults or delays interest or principal payment.\ The dreaded NPA rule says when interest or other dues to the bank remains unpaid for more than\ 90 days; the entire bank loan automatically turns as \“NPA\”. The recovery of loan has always\ been a problem for banks. NPA are threatening the stability and demolishing bank\’s profitability\ through a loss of interest income and write-off of the principal loan amount itself.\ This paper focuses upon the implications of NPAs in the banking sector. A comparative analysis\ of NPAs of public sector banks vis-{\`a}-vis private sector banks has been undertaken \– For the\ purpose of this study six banks have been randomly chosen (3 each from the private and public\ sectors). Data has been collected from the annual reports of the banks. It is found that banks need\ to monitor standard assets to assert any account from becoming a NPA. Today, the success of\ banks depend on the methods of managing NPA\’s and keeping them within a tolerance level.\ 
Banks are not allowed to book any income from NPA\’s; also they need to make provisions for\ NPA\’s which impacts profitability adversely. With the introduction of international norm of\ 
income recognition, asset classification and provisioning in the banking sector, managing NPA\ has emerged as one of the major challenges facing banks. Besides, resorting to legal remedies for\ recovery of their dues, banks have also utilized the services of the Debt Recovery Tribunals\ (DRT).
}, keywords = {Asset, Banks, Income, NPA, Profitability}, author = {Devi,Tara} } @article {3818, title = {Mounting NPAS in Indian Nationalised Banks}, journal = {IIFSTEG2014}, year = {2014}, month = {10/2014}, publisher = {Maharani Lakshmi Ammanni College For Women}, address = {Bangalore}, abstract = {
Non-Performing Assets have been substantially reduced since regulations were tightened in\ 1993, but improvement has recently slowed down and the levels of NPA remain high\ 
compared to international standards. According to RBI norms, NPA has been defined as a credit\ facility in respect of which interest has remained past due for a period of four quarters. The\ Gross Non-Performing Assets (GNPAs) of Nationalized Banks as on June 2012 were Rs.73,038\ crore which amount to 2.94\% of Gross Advances. In this direction present paper is undertaken\ to study the reasons for advances becoming NPA in the Indian Commercial banks Sector and to\ give suitable suggestion to overcome the mentioned problem. In this direction present paper is\ undertaken to study the reasons for advances becoming NPA in the Indian Commercial banks\ Sector and to give suitable suggestion to overcome the mentioned problem.
}, keywords = {Advances, Gross NPA, Loans, NPA}, author = {DR MAHIBUB DALAL} }