Effective NPA Management: The need for improving the bottom line Ramesh K Vice President-Customer Experience, G4S Corporate Services(India) Pvt. Ltd., No. 2, 1st Floor, Prestige Commercial Complex, Church Street, Bangalore-560001, Karnataka, India (M): +91-9845296494, (W): +91-80-42682299, (E): k.ramesh@in.g4s.com Online published on 12 May, 2017. Abstract India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities. The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system. The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing guideline to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by both government and private sector, India is undoubtedly one of the world's most vibrant capital markets. With growth comes challenges: constant Technology change, consumer preference/expectation, Regulatory, political, Capital Adequacy, NPA etc., One of the major parameter that affects the performance of Banks are NPA (Non-Performing Assets). These papers deals with understanding of various definition of NPA, the concept, management tools and suggest mechanism of effectively Managing of NPA for better bottom line. Top |