Theme: The hazards of impulsive growth in Non-Performing assets title: A descriptive analysis of the severity, causes and cures to the problem of Non-Performing assets in Indian Banking Industry Mishra Anand Kumar1, Pathak Manish Kumar2, Kumar Avinash3 1M. Com, Faculty of Commerce, Banaras Hindu University, E-mail: ananddheeraj2013@gmail.com 2M. Com, Faculty of Commerce, Banaras Hindu University, E-mail: mkpathak504@gmail.com 3B. Com (2ND YEAR), Faculty of Commerce, Banaras Hindu University, E-mail: avi9572kumar@gmail.com Online published on 2 April, 2019. Abstract Prevalence of a potent banking sector is considered to be the prerequisite of a strong foundation of a country. That's the reason why banking sector is called the backbone of an economy. The most important function and the biggest asset of the banks are the loans sanctioned by them upon which they earn interest to bear all expenses and earn profit. But in today's scenario, banks of many countries like India suffer from the growing volume of Non-Performing Assets that has created an intense havoc like situation. Non-Performing Assets normally include all such loans on which the borrowers are unable to repay the principal and even the interest within 90 days of the expiration of due date. Today the Non-Performing Assets accounts to 10% of the total loans granted by the banks, which in itself is a huge sum. The worsening situation of Non-Performing Assets have come to light in past few years when the Assets Quality Review (AQR) proposed by the former Reserve Bank of India Governor Raghuram G. Rajan was introduced. The growing Non-Performing Assets not only negatively impact the liquidity and profitability of the banks but also increases the chance of occurrence of certain risks like credit contraction. Earlier several committees on Non-Performing Assets had given their recommendations which were implemented too, but have become irrelevant and ineffective today. The paper has used the mix of primary and secondary data sources for the purpose of finding out the causes of the problems such as-loopholes in the banking system, absence of specific regulatory action plans and unnecessary direct interference of Govt. in the functioning of banks. Proper and timely impetus to the banking sector could easily tackle the worsening situation of banks. But going by the saying that it's never too late, the paper also insinuate some steps that should be undertaken to prevent the threatsome situation in the banking sector. Top Keywords Non-Performing Assets, Credit creation, Profitability, Liquidity, Pre-appraisal, Monitoring, Re-construction, Re-structure. Top |