A Study of Factors Amplifying Non-Performing Assets in Public and Private Banks in the Indian Economy

Abstract

Banking system is the foundational stone of Indian economy. In recent time, both public and private sector banks were marred by an growing number of NPAs, which is a matter of grave concern for Indian economic stability. This study aims to analyse the significance of growing NPAs on banking industry, identify the factors that contribute to the growth in the number of NPAs in Public and Private Banks in India, analyse them in Indian context and suggests various remedial measures for reducing the growing amount of NPAs with banking industry. The study also endeavours to formulate NPAs amount recovery techniques with explanation of their efficacy in Indian Banking Sector. It tries to provide various suggestions to stakeholders, analyisng both the adavantages and disadvantages of each such measure for the arrest in the growth of NPAs and their remediation.