• Dr. Chandra shekhar Kumar

Over a decade Non-performing Asset (NPA) has emerged as an alarming threat to the banking industry in our country causing affliction on the endurability and sustainability of the affected banks. Not only the banks are affected but also the whole economy is severely affected. The issue of mounting non-performing assets is giving jitter to banking sector particularly in many a developing economy. In fact high level of NPAs in Indian Banks is nothing but a reflection of the state of health of the industry and trade. In Indian economy, Banking sector is not only for the purpose of achieving profitable banking business but also to reduce the magnitude of banking funds locked in the bad debt accounts. A healthy banking system is essential for economy striving to achieve growth and remain stable in competitive global business environment. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net worth of banks and erodes the value of the asset. Reserve Bank of India and Government of India has made some notable changes in policies and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulation of commercial banks. The best indicator to the health of the banking industry in a country is its level of Non-performing Assets (NPAs). NPAs are one of the major concerns for banks in India. It reflects the performance of banks. Reduced NPAs generally gives the impression that banks have strengthened their credit appraisal processes over the years and growth in NPAs involves the necessity of provision, which bring down the overall profitability of banks. The Indian banking system is facing a serious problem of NPA. The magnitude of NPA is comparatively higher in public sector banks. To improve the profitability and efficiency of banks the NPA need to be controlled and reduced. The paper deals with understanding the concept of NPA, its magnitude and major cause for an account becoming non-performing, policy directives of Reserve Bank of India, initiatives of Indian Government and also strategies for reducing NPAs.

NPA, Banking sector, Prudential Norms, Credit defaults, Government Initiatives, Strategies.

"Non-Performing Asset Management by Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.1110-1119, June 2019, Available :http://www.jetir.org/papers/JETIR1907U37.pdf

"Non-Performing Asset Management by Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp1110-1119, June 2019, Available at : http://www.jetir.org/papers/JETIR1907U37.pdf