Non-Performing Assets: Nightmare for Banks?

Abstract

In absolute terms, the Gross NPA has increased from Rs. 70,063 crore in 2008-09 to Rs. 1,93,194 crore, a jump of about 175% in 4 years. This is alarming and there is no way that one can even try to ignore that. The area that is of paramount importance to the bank management today is the worsening quality of assets, which primarily consist of advances. The deterioration in quality of assets has become a matter of grave concern and a prolonged dull economy is not also helping things either.