International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
Vol. 3, Issue 2 (2020)

A study on analysis of non-performing assets and its impact on profitability: In the context of Indian banking system


Dr. Uttam Kumar Purbey

The banking industry plays a critical role in the Indian economy. Measuring and maintaining the asset quality of banks is important for the development of the banking sector. Nowadays, the asset quality in banks, especially the Public Sector Banks is constantly deteriorating and thus causing intolerable stress to the banking sector, regulators, and Indian economy. The objective of the present study is to understand the level of Non-performing Assets (NPA), and how it influences the profitability of the banks. Non-performing Asset is one of the prevalent problems of Indian Banking sector. For the past three decades, the banking system has several outstanding achievements to its credit. Many banks are facing the problem of NPAs which hampers the business of the banks. Non-performing assets are a drain to the banks. Various research studies have been conducted to analyze the root causes of NPA. The following study tries to understand the concept of NPA, its causes and impact on profitability. The problem of NPA impacts profitability, Liquidity and results in credit loss. Unless and otherwise proper remedial measures are taken the quantum of nonperforming assets cannot be reduced and the bank will incur losses to a great extent.
Pages : 91-95 | 3016 Views | 2259 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Dr. Uttam Kumar Purbey. A study on analysis of non-performing assets and its impact on profitability: In the context of Indian banking system. Int J Finance Manage Econ 2020;3(2):91-95. DOI: 10.33545/26179210.2020.v3.i2.64
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