• Dr. Ragini Agrawal
• Saksham Agrawal

A businessman takes a loan from bank, it increases the production of goods & services and sales and profits which raise the money supply in the economy and finally the growth in the economy. Banks grant loans and advances for economic growth. These loans can be used for funding a start-up to buying appliances for newly purchased house. Recycling of fund’s received back from borrowers constitute a major part of funding credit dispensation activity apart from raising resources from fresh deposits etc. Non recovery of instalments and interest on the loan given negates the effectiveness of this credit cycle process. It also effects the profitability of banks as well as capital and reserve cushion of the bank. The issue of non-performing assets (NPAs) has become more important due to transparency disclosure norms initiated by RBI in recent years. Also, the Basel Norms are designed to ensure that financial institutions maintain enough capital on account to meet their obligations and also absorb unexpected losses. They are the international banking regulations issued by the Basel Committee on Banking Supervision, (BCBS). The present research paper examines the causes, impact and measures taken for non-performing assets issue in India with brief introduction of loans and advances. It will also discuss the Basel Norms initiatives in this regard.

Loans, Non-performing assets, Basel Norms, India

"Non- Performing Assets scenario in Indian Banking Sector ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 2, page no.162-170, February-2021, Available :http://www.jetir.org/papers/JETIR2102320.pdf

"Non- Performing Assets scenario in Indian Banking Sector ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 2, page no. pp162-170, February-2021, Available at : http://www.jetir.org/papers/JETIR2102320.pdf