An Analysis of Rising Share in NPAs of Public Sector Banks and Meaningful Parameters of Indian Economy Dr. Agarwal D.R.1, Ms. Kapur Suruchi2,* 1Prof. Emeritus, School of Commerce & Management, Starex University, Gurugram, Haryana, 122413, India 2Assistant Professor, School of Commerce & Management, Starex University, Gurugram, Haryana, 122413, India *Corresponding Author: Suruchi Kapur, Assistant Professor, School of Commerce & Management, Starex University, Gurugram, Haryana, 122413, India. E-mail: kapursuruchi6@gmail.com
Online published on 2 July, 2019. Abstract Over the last couple of years, Indians banks with particular emphasis on public sector banks have been mired in a serious existential threat on account of disproportionately rising non-performing assets. Under pressure of arresting an economic crisis from a potential banking debacle, the government has passed the legislation of bankruptcy and made the beginning by initiating insolvency proceedings against 12 companies owing more than Rs. 5, 00 crores. From the size and magnitude of NPAs declared so far, three important inferences can be drawn as follows: NPAs are promoters/owner based enterprises. All NPAs were appraised sound and worthy investments by Banking System of Appraisal. All NPAs were part of Growth Agenda initiative of existing enterprises. Therefore what need to be understood and analysed in greater detail revolves around two core issues viz. what determines the readiness of such enterprises for growth and missing link of banking system to make an assessment of readiness of the enterprises envisaged growth notwithstanding the prevailing financial merits from existing business. On the other hand world's fastest growing economy (India) ranked 126 out of 200 countries on the yard stick of GDP per capita is deplorable. Between 2004–05 and 2015–16, total employment growth has been negative in three years 2012–13, 2014–15 and 2015–16. Gini's coefficient (globally used as a statistical measure of income inequality) rose by 15 percentage points from 2013 to 2016. India has climbed one spot to 130 out of 189 countries in human development index for 2017 released by the UN Development Programme (UNDP) on 13-9-2018. These are a serious concern, which have been examined. Top Keywords NPA, Important Parameters of Indian Economy [Per capita GDP, HDI, Volume of employment, Income Inequality]. Top |