International Journal of Management, IT and Engineering
Year : 2017, Volume : 7, Issue : 1
First page : ( 91) Last page : ( 103)
Online ISSN : 2249-0558.

Non-performing assets (NPA's): Causes and Remedies (A case study of Andhra Pradesh Grameena Vikas Bank (APGVB), Viziana garam)

Dr Pallavi E V P A S*

*Assistant Professor, Department of Management Studies, MVGR College of Engineering (A) Vijayaram Nagar Campus, Chintalavalasa, Vizianagaram

Online published on 12 May, 2017.

Abstract

Banks plays a major role in the economic development of a country. The banking business is exposed to various risks, such as credit risk, liquidity risk, interest risk, market risk, and operational risk. Apart from these risks the very important risk is loan recovery. Recovery of advances is the life line for banks. Poor rate of recovery affects the recycling of funds. Non-Performing Assets (NPA's) are one of the major areas of concern for the Indianbanking industry. They do not generate any cash flow, whereas, the bank is required to make provisionfor such non-performing assets. The RBI has been introduced the concept of Non-Performing Asset (NPA) and certain norms with effect from 1.4.1992 which are useful not only to know the true financial position but also to take corrective actions for improving the performance of their loan portfolios. This paper mainly focuses on the causes and remedies of NPA's from various dimensions by considering gross NPA's, Net NPA's, Gross Advances and Net advances of APGVB.

Top

Keywords

Non-Performing Assets (NPA's), Gross NPA, Net Advances and Net NPA's.

Top