AbstractsBusiness Management & Administration

A Study on Non Performing Assets of Public Sector Banks in India with Special Reference to State Bank of Travancore

by K K Siraj

Institution: Cochin University of Science and Technology
Year: 2014
Keywords: Non Performing Assets; Asset Quality; Credit risk management
Record ID: 1183510
Full text PDF: http://dyuthi.cusat.ac.in/purl/4685


The reforms in Indian banking sector since 1991 is deliberated mostly in terms of the significant measures that were implemented in order to develop a more vibrant, healthy, stable and efficient banking sector in India. The effect of a highly regulated banking environment on asset quality, productivity and performance of banks necessitated the reform process and resulted the incorporation of prudential norms for income recognition, asset classification and provisioning and capital adequacy norms, in line with international best practices. The improvements in asset quality and a reduction in non-performing assets were the primary objective enunciated in the reform measures. In this context, the present research critically evaluates the trend in movement of nonperforming assets of public sector banks in India during the period 2000-01 to 2011-12, thereby facilitates an evaluation of the effectiveness of NPA management in the post-millennium period. The non-performing assets is not a function of loan/advance alone, but is influenced by other bank performance indicators and also by the macroeconomic variables. In addition to explaining the trend in the movement of NPA, this research also explained the moderating and mediating role of various bank performance and macroeconomic indicators on incidence of NPA School of Management Studies Cochin University of Science and Technology Cochin University of Science and Technology