STRATEGIES OF MANAGING NON-PERFORMING ASSETS OF INDIAN BANKING SECTOR

Banking sector is a driving engine of economic growth for the developing market economies. In today’s world, banking is all about management of NPA because economic repercussions of a bank’s collapse could be catastrophic on whole monetary system. Defective NPA management practices played a serious role in recent incidents of financial chaos. This book deals with the strategies adopted by the public and private sector banks to manage Non- Performing Assets. The research concluded that bankers of public sector banks and private sector banks adopt different strategies to manage NPAs. But there are few strategies which are more important to both the public and private sector banks like financial position of borrowers in appraisal process, monitoring of standard assets in monitoring and controlling and early warning signals in other strategies. Major factors such as poor legal system, attractive schemes, industrial recession and poor follow-up and supervision affected badly of NPAs of public sector banks whereas factors such as improper planning of customers, attractive schemes and rate of interest affected NPAs of private sector bank.