Title
NonPerforming Assets and Public Sector Banks in India: Banking in India,Used
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The banking sector being the backbone of economy, social orientation of banking had been considered essential for the planned economic development of any country.Due to this acknowledged aim,the Banks in India were nationalized in 1969. After two decades of nationalization,the Indian banking sector has achieved considerable progress in all the spheres of business.The concept of banking had undergone a dynamic change in keeping with the need to achieve rapid socioeconomic progress. Despite the overall progress made by the financial system,very high and ever growing NPA had become the major stumbling blocks in the banking sector during the post nationalization decades. It was against this background that the banking sector reforms were initiated in India However, increasing NPAs have a direct impact on banks profitability as legally banks are not allowed to book income on such accounts and at the sometime are forced to make provision on such assets as per the Reserve Bank of India (RBI)guidelines.In the present book,an attempt is made to discuss the important constituents of NPA in financial institutions and how this problem is being faced by banking sector in india.
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