Role of Increasing Levels of Non Performing Assets in Bank's Deteriorating Financial Position: A Review of Literature

8 Pages Posted: 7 Jul 2020 Last revised: 16 Jul 2020

See all articles by Kamakshi Mehta

Kamakshi Mehta

Amity University Haryana (AUH)

Shiv Swaroop Jha

Amity University

Date Written: June 28, 2020

Abstract

Non Performing Assets (NPA) have witnessed a tremendous increase since the world wide recession of 2009 . The Reserve Bank of India (RBI) along with the Indian Government have implemented rules and issued directives to control the rising level of NPA, but have failed . The ever rising NPA level has resulted in the fall of the income and profitability level of the bank , further resulting in their failures . The study comprises of review of literatures published b y renowned researchers on Rising NPA’s and Bank failures . The study comprises of explanation of different views of academicians and regulators . A total of 105 research papers, published in eminent journals , have been reviewed . The main purpose of the study is to discuss the various causes instigating the rising level’s of NPA . It also studies the role of these causes in the downfall of the various banks. It is undisputed that the road to recovery is very long but the study recommends the measures which can be taken to control and reduce the rising NPA levels.

Keywords: Banks, Non-performing assets, Stressed assets, Bad Loans, Assets quality, RBI

Suggested Citation

Mehta, Kamakshi and Jha, Shiv Swaroop, Role of Increasing Levels of Non Performing Assets in Bank's Deteriorating Financial Position: A Review of Literature (June 28, 2020). Indian Institute of Management Udaipur Research Paper Series Forthcoming, Available at SSRN: https://ssrn.com/abstract=3637398

Kamakshi Mehta (Contact Author)

Amity University Haryana (AUH) ( email )

Amity Education Valley, Panchgaon, Haryana 122413
Gururgram, HI Haryana 122413
India

Shiv Swaroop Jha

Amity University

ASET- IT Department, Sec-125
Amity University, Sector 125
Noida, UT Uttar Pradesh 2013003
India

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