Non - Performing Assets (NPA) in Indian Banks: policy responses to address the issue.

Abstract

A sound banking sector reflects the state of the economy. Despite impressive performance of banking sector in the past decades, it is under the threat of building Non-Performing Assets (NPAs), substantially eroding the capital base. This policy paper looks at understanding the depth of the issues, existing policy measures to improve status quo and suggests adding a new policy dimension aiming at prevention measures.