Non-performing Assets

Abstract

The economic growth of a country is heavily reliant on the crucial function of the banking industry. A sound banking sector is essential for maintaining a healthy financial system and a productive economy. After the economic reforms in 1991, the banking industry in India underwent a significant change. The banking industry in India is properly regulated and has enough capital. No other country in the world has financial and economic conditions that are as exceptional as those in this country. According to the analysis of credit, market, and liquidity risks, it can be inferred that Indian banks are generally robust and have successfully navigated through the global economic crisis. Banks are currently facing a significant risk in the form of nonperforming assets (NPAs), which have caused a decrea se in their profits.