According to the Reserve Bank of India, there are sectors which have created distressed assets, the major ones among them are power distribution sector companies, airline sector and the telecom sector. According to the government sources, infrastructure projects will need $1 trillion in the coming five years. The power sector has caused more stress as […]Continue Reading... No Comments.
Worldwide, the common and successful approach towards NPA management is the establishment of Asset Management Companies (AMC). These companies use public or bank funds to remove NPAs from the bank books. Now, there are several proactive measures that are being implemented. Few of them are: Corporate Governance Better credit information to cut down on fresh […]Continue Reading... No Comments.
NPAs do not just reflect badly in a bank’s account books, they adversely impact the national economy. Following are some of the repercussions of NPAs: Depositors do not get rightful returns and many times may loose uninsured deposits. If there is a high number of non-performing assets in a bank’s portfolio, then in order to […]Continue Reading... No Comments.
NPA stands for Non-Performing Assets. Alternatively, they are also termed as Non-Performing Loans (NPL) when the asset given as loan falls under the same category. NPA refers to those loans that have stopped making any returns, i.e., defaulted loans. Formally, these are defined as “loans on which debtors have failed to make contractual payments at […]Continue Reading... No Comments.