NPA and its impact on asset quality- Bankers' Perception

Abstract

NPA is a burning issue in the Indian Banking Sector. So the main purpose of the paper is to identify the trends in the NPA and to examine bankers’ perception on reasons for NPA and to suggest measures for minimizing NPA. The study is based on both primary data and secondary data. Secondary data is collected for a period of 16 years from 2002 to 2017. Percentages, growth rates, mean, standard deviation, Z-test and chi- square tests are the major tools of analysis. The study has found that over the years there is tremendous growth in the NPA of banks. The major reason for this was wilful default from the part of borrowers and siphoning of funds for other purposes. The significant contribution of the study will be pragmatic suggestions on improving asset quality of banks in India. It will throw new insights on effective credit management by banks.