Evaluating the Factors Impacting Non Performing Asset in Banks through Factor Analysis Approach
8 Pages Posted: 14 Jun 2019
Date Written: March 22, 2019
Abstract
One of the biggest problems banking industry is suffering from i.e. Non Performing Asset. Proper management of NPA is very essential because it will distract the business of bank. The rising amount of NPA will “weaken the bank revenue stream”. It will also bring the scarcity of funds in the markets or shareholder may also lose the money, so it is required for the bankers to take essential steps to reducing NPA .In this paper, 13 variables were considered and analyzed to find out the factors which may address the problem of mounting NPAs as per the perception of both public and private sector bankers’. The statistical tool called SPSS was used to run the factor analysis.
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