• Santosh Kumar Sah

The impact of Non-Performing Assets (NPAs) on banking institutions is a critical aspect of financial stability and risk management. This abstract provides an overview of the implications of NPAs on the financial health, profitability, capital adequacy, liquidity, and reputation of banks. NPAs, categorized based on their duration of non-performance, pose significant challenges to banking institutions worldwide. Economic downturns, ineffective risk management practices, and poor credit appraisal contribute to the proliferation of NPAs. The repercussions of NPAs are far-reaching, affecting various aspects of banking operations. Financial health indicators such as Net Interest Margin (NIM), Return on Assets (ROA), and Return on Equity (ROE) are adversely impacted by NPAs, affecting profitability. Moreover, NPAs erode capital adequacy ratios, exposing banks to regulatory scrutiny and constraints. Liquidity risks escalate as NPAs tie up funds that could otherwise be deployed profitably. Additionally, high NPAs tarnish a bank's reputation, eroding customer trust and investor confidence. Effective NPA management strategies, including restructuring and recovery mechanisms, are essential for mitigating these impacts. Regulatory interventions and robust risk management practices play a pivotal role in addressing NPAs and safeguarding banking institutions' stability. This abstract underscores the necessity for banks to proactively manage NPAs to preserve financial soundness and uphold stakeholders' trust.

Financial Stability, Credit Risk, Profitability, Risk Management, Capital Adequacy

"Impact on Non- Performing Assets(NPAs) on Banking Institutions", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 3, page no.k175-k182, March-2024, Available :http://www.jetir.org/papers/JETIR2403A21.pdf

"Impact on Non- Performing Assets(NPAs) on Banking Institutions", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 3, page no. ppk175-k182, March-2024, Available at : http://www.jetir.org/papers/JETIR2403A21.pdf