Non Performing Assets: A Burden on Banking Sector (An Assessment of Indian Commercial Banks’ Profitability)

  • Dr. Naina Hasija Associate Professor, Department of Commerce, Delhi University, INDIA
Keywords: Asset Classification, Provisioning for NPAs, Capital Adequacy Norms, Basel III Standards, Regulatory and Supervisory Control by RBI Over


After the evolution of new Industrial Policy 1991, banking system reforms became an important issue for the government. During this the reforms laid down by the Shri Narasimhan Rao Committee became quit important. It was at this time that the banking system was drastically transformed. These reforms adopted the international best practices to strengthen the functioning of banking industry. Many of these proposed reforms were implemented in the hopes of enhancing bank overall efficiency and lowering non-performing assets (NPA). The banks' profitability and financial efficiency would also improve as a result of this. For the purposes of this study, individual private sector banks, nationalised banks, and SBI and its affiliates were considered. The research is based on secondary data from the Reserve Bank of India's website for the years 2010 to 2017. The purpose of this research is to determine how banks have contributed to the growing threat and what the banking industry's trend has been in regards to these low-quality loans.

The author has also attempted to research and analyse RBI's proposal to implement Basel III norms in the banking sector beginning in January 2013, as formulated by the Bank for International Settlements (BIS) in consultation with central banks operating in a number of countries around the world in their respective economies and following sound financial and operational policies.


Download data is not yet available.


Reserve Bank of India- Master Circulars 2014-15, 2015-16, 2016-17.

Standing Committee On Finance (2017-18).

Report On Trend And Progress Of Banking In India 2014-15, 2015-16,2017-18.

Economic Survey.

Stressed Account Management & Financial Stability-July –September 2016, Bank-Quest.

Asset Quality Review and its impact on banks. July 16, 2016, Manojit Saha, ‘The Hindu”

Examining the rise of Non-Performing Assets in India. (2018). Ahita Paul.

PSU banks account for over 90% of total bad loans in FY’. (2014). The Economic Times.

Annual Reports of Reserve Bank of India, Various Issues.

RBI Working Papers Series.

How to Cite
Dr. Naina Hasija. (2019). Non Performing Assets: A Burden on Banking Sector (An Assessment of Indian Commercial Banks’ Profitability). International Journal of Engineering and Management Research, 9(6), 122-127.