A Study on Non-Performing Asset with Referenc...

A Study on Non-Performing Asset with Reference to Ujjivan Small Finance Bank, Bangalore

Author Name : Vidya C.S., Dr. Savita Trivedi, Mr. Sathisha Lakshmaiah

ABSTRACT In India Non-performing assets are one of the major concerns for banks. NPA is the best indicator for the health of the banking industry. NPAs reflects the performance of banks, NPAs are the primary indicators of credit risk. NPAs are an inevitable burden on the banking industry. Hence the success of a bank depends upon methods of managing NPAs. After the opening up of the Indian economy during 1991-92, the entire economy including that of banking sector were left to the severe global challenges. Prior to globalisation, bankers were almost going by traditional thought process of mobilizing fund from the market and lending fund to a section of the people for industrial, commercial and other business or personal purposes. Follow up methodology for recovery of loans was poor and bankers were used to book their profit arising out of interest or commission earned on accrual basis without ascertaining the reliability of the income. The project contains a brief history of Banking in India with main focus on growth and challenges in the Ujjivan Small Finance bank in particular dimension to rising trend of Non-performing loans. Analysis has been shown about how NPA in Ujjivan Small Finance Bank have shot up during the last five years from 2014 onwards. The Indian banking scenario in terms of Non-performing loans has also been compared to some extent with the Global banking scenario. The project broadly discusses the various measures to tackle NPA during earlier times as well as in recent times.