Impact of NPAs upon Profitability of State Bank of India- A critical review
DOI
Access Status
This content is available to Open Access.
To download content simply use the links provided under the Files section.
More information about licence and terms of use for this content is available in the Rights section.
Type
Article
Date
2016-03
Journal Title
Anweshan - journal of Department of Commerce
Journal Editor
Mitra, Debabrata
Journal ISSN
Volume Title
Publisher
University of North Bengal
Statistics
Total views and downloads
Views
180Downloads
535Citation
Kumar, A., & lall, S. B. (2016). Impact of NPAs upon Profitability of State Bank of India- A critical review. Anweshan - Journal of Department of Commerce, 4(1), 66–78. https://ir.nbu.ac.in/handle/123456789/2953
Authors
Advisor
Editor
Abstract
Banking sector is one of the leading indicators of a nation and represents one of the most important components of a nation’s capital. In a same manner loan represents the one of the important components of a bank’s total assets, which generates income for the bank. Timely recovery of the lone is important for the performance of the banks. A loan whose interest or principle has been overdue for over 90 days become NPAs and treated as bad loan. These bad loans are not able to generate income for the bank which affects the profitability of the bank. Therefore, the non-performing loans ratio is a critical tool to measure a bank’s performance. The main function of a bank is to accept deposit which is liability of a bank and provide loan generates income for the bank. The quality of loan assets is the most important factor for the basic viability of the banking system. Lower level of the non performing assets helps the bank in consolidating their position and gives credence to efficiency of the management. The bank not only evaluate the creditworthiness of the borrower at the time of processing of loan but the close monitoring of the borrower regularly will help the banks to reduce the level of NPA. In the era of globalization where whole world is treated as the domestic market, the Indian banks are not able to compete due to certain inherent weakness. The purpose of study is to investigate whether there is a significant relationship between non- performing assets and the performance of bank.
Description
Keywords
Citation
Accession No
Call No
Book Title
Edition
Volume
ISBN No
Volume Number
4
Issue Number
1
ISSN No
2321-0370
eISSN No
Pages
Pages
66 - 78