|
Non-Performing Assets: A Brunt on Financial Performance of Banks |
|---|---|
| รหัสดีโอไอ | |
| Creator | 1. Neha Kalra 2. Shaveta Gupta 3. Rajesh Bagga |
| Title | Non-Performing Assets: A Brunt on Financial Performance of Banks |
| Publisher | Asian Forum on Business Education (AFBE) |
| Publication Year | 2555 |
| Journal Title | AFBE Journal |
| Journal Vol. | 5 |
| Journal No. | 2 |
| Page no. | 129 |
| Keyword | Non-performing assets,SARFAESI,Correlation Analysis and Multiple Regression Analysis |
| ISSN | 2071-7873 |
| Abstract | Non-Performing assets (NPAs) in the banking arena is adding to the troubles of Indian economy. It is apparent that banks in each and every economy are behind propelling of an economic growth. And in turn, the growing economy has positive impact on the survival of banks too in terms of augmenting demand for credit. The brisk rate of Indian economic growth can be considered as good example of the role played by banks in the country?s success. Now days, banks are playing the role of credit creators and are offering number of services by widening their area of operations. But along with the expansion of banks, have emerged a biggest problem and that is NPAs. Though this problem is not new yet a lot of efforts are required to be put into this specific area. So to solve this problem, a lot of concentrated efforts with a focused approach are the need of hour and Government of India along with RBI has started to take steps to tackle this mounting edifice of NPAs. The current study has been carried out on nationalized banks in India in order to study the impact of NPAs on liquidity and profitability of banks using Correlation and Multiple regression analysis. The study bring forth that NPAs reduce the profitability of banks, weaken its financial health and erode its liquidity. The study also reveals that the NPA to total advances is a critical variable that not only affect the profitability of the banks but also affect the liquidity position of the banks. |
