SAURABH KUMAR

Roll no. 21
BBE SEMESTER 3
Group no. 5
 1.Non performing Assets - meaning
CONTENT  
2.Types of Non performing Assets
 
3.Causes of non performing Assets

4.How does these problem affect common man?

 
5.Prevention of NPA
 
6.Conclusion

7.References
 
 What is NPA?

A loan whose interest and / or installment of principal have

remained due for a period of 90 days is,thus considered as
NPA.

 Doubtful Substandard
Asset Asset

Standard
Asset
Loss Asset

Types of
NPA
 C
au
se
s
of
N
P
A

??

Internal and

External

Factors ??
 Internal
Factors
Absence of
1. Defective
External Factors
Lending regular
process industrial
visit
a. Ineffective recovery tribunal
b. Willful Defaults
c. Natural calamities
Inappropriate .Managerial
d. Industrial sickness
technology deficiencies
Improper
e. Lack of demand SWOT
f. Change on Govt. policies analysis

 Natural
calamities
Willful Natural
Industrial
Defaults calamities
sickness
Willful
Industrial
Defaults
sickness

Change
Ineffective on Govt.
recovery policies
Change
tribunal
on Govt.
policies

External
Factors
 lose the confidence level of consumers
and depositors.

How does this Changes in Interest Rates

problem affects e
the common man? Levies of charges for every operation

A Withdrawal limit from ATM

B. Withdrawal number of times
C. Cash deposits in other branches

Shareholders will lose lots of

money
Prevention of NPA

 SARFAESI Act

To release a notice to borrower

Take possession of the secured assets of the borrower

Sell or lease the security

Debt Recovery Tribunals

Lok Adalat

Compromise settlement

Credit information Bureau

 Conclusion
• Government of India is trying hard to rescue the banks,
particularly looking at the downfall of PSBs in the
country.

• Moreover, there must be rigorous practices adopted to take

correct decisions for granting loans to individual
borrowers or companies.

• One cannot ignore the fact that a part of the reduction in

NPA is due to the writing off bad loans by banks.

• Indian banks should take care to ensure that they give

loans to credit worthy customers.

• As per RBI provisional data on global operations, as on

31.3.2019, the aggregate amount of gross NPAs of PSBs
and Scheduled Commercial Banks (SCBs) were Rs.
8,06,412 crore and Rs. 9,49,279 crore respectively.
 References
https://indianmoney.com/articles/what-is-the-main-
cause-for-an-increase-in-non-performing-assets-of-
banks

https://www.investopedia.com/terms/n/non-
performing-assets.asp

https://corporatefinanceinstitute.com/resources/kno
wledge/other/non-performing-assets-in-indian-banks/

https://www.clearias.com/non-performing-assets-
npa/

https://pib.gov.in/newsite/PrintRelease.aspx?relid=19
0704