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FIIB Business Review
Year : 2017, Volume : 6, Issue : 4
First page : ( 10) Last page : ( 19)
Print ISSN : 2319-7145. Online ISSN : 2455-2658.
Article DOI : 10.5958/2455-2658.2017.00002.8

Managing NPAs of Indian Banks: Recent Developments

Bhatt Maulik1, Panda Rasananda2

1Research Associate, MICA, Ahmadabad, Gujarat, Indira-380058., E-mail: bhatt_maulik2000@yahoo.com

2Professor, MICA, Ahmadabad, Gujarat, India-380058, E-mail: panda@micamail.in

Online published on 23 March, 2018.

Abstract

Banks in India are facing the problem of non-performing assets (NPA), for which a credible solution is yet to be found. The grossNPA increased by 23% between 2005–2016. The Reserve Bank of India, the central bank of the country, and the Government of India are considering alternative approaches to reduce the NPA level. In May 2017, the Government gave more power to RBI's Oversight Committee through an ordinance. This paper reviews literature related to management of stressed assets to discuss the feasibility of the ordinance to reduce the NPA level in India. An attempt is made to review the approaches adopted to defineand manage the NPAs and to review the relative effectiveness of the approaches to recover NPAs.

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Keywords

NPA, Stressed Assets, Indian Banks, RBI, Public Sector Banks, Private Sector Banks, Oversight Committee, Ordinance.

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