Journal of Finance and Bank Management

A Study on the Composition of Non-Performing Assets (NPAs) of Scheduled Commercial Banks in India
Dr. M. Syed Ibrahim, Dr. Rangasamy Thangavelu

Abstract
The Banking industry is one of the basic instruments of economic growth. It must be on a sound footing as it constitutes an important link in various socio-economic activities. A strong banking sector is important for flourishing economy. The failure of the banking sector in any country may have an adverse impact on other sectors. Non-performing Assets (NPAs) are one of the major concerns for banking sector in India. Non-performing Assets also called NPAs is the term used in banking and finance sector. Basically this term (NPAs) is used in loan department of the bank. The assets of bank which do not perform any role in getting profit to the organisation, such assets are called Non-performing Assets. NPAs reflect the performance of banks in any country. The more the NPAs the lower the performance of bank. The issue of NPAs has been discussed at length of financial system all over the world. The problem of NPAs is not only affecting the banks but also the entire economy of any country. In this paper, an effort has been made to analyze the concept of NPAs, components of loan assets the commercial banks in India with especial reference to the public sector, private sector and the foreign bank. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that the commercial banks have significantly improved their working performance in the areas of NPAs.

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