A STUDY ON NPAS AND ITS EFFECTS ON BANKS’ PROFITABILITY
Abstract
NPA is nothing but old wine in the new bottle. The bad loans which were known as Bad Debts have been renamed as Non-Performing Assets as per the Narsimham Committee recommendations. Previously banks used to write off the bad debts as per their own decisions depending upon the health of the banks. But Narsimham Committee prescribed a standardized norm for the provisioning of NPAs. The present paper examines the reason for the growth of NPAs and what are the preventive measure to be taken to reduce the growth of NPA
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