Open AccessA comparative evaluation of NPAs recovery mechanisms by Public sector Banks in India
Author(s) -
Lovleen Gupta,
Mridul Dharwal
Publication year - 2017
Publication title -
mudra : journal of finance and accounting
Language(s) - English
Resource type - Journals
eISSN - 2395-2598
pISSN - 2347-4467
DOI - 10.17492/mudra.v4i01.9782
Subject(s) - non performing asset , public sector , debt , financial system , business , financial sector , economics , finance , accounting , economic policy , economy , capital asset pricing model
A consistent increase in Non-performing assets (NPA) in the financial statements of various public sector banks has put several questions before policy makers and regulatory institutions with regard to functioning of banking system in India. Besides reflecting deteriorating financial health of banks, it also restricts the liberty of banks in adopting new strategies towards growth. Rather banks are required to adopt conservative approach in sanctioning new loans till the problem of NPAs is reasonably resolved. This study examines the growth of NPAs during the period 2001-02 to 2012-13 in public sector banks in India and the effectiveness of Lok Adalats, Debt Recovery Tribunals and SARFAESI Act, 2002 in solving the problems of NPAs.