3 Review(s)

The liberalization of financial sector in India is exposing Indian commercial banks in a new economic environment that has characterized by increased competition and new regulatory requirements. The paradigm shift of attitude of finacial institutions towards the short term financing has also changed the complexion of scheduled commerical bank. The growing competition and sluggish growth in economy coupled with poor credit deposit ratio, the large volume of non-performing assets in the balance sheet and lack of automation and professionalization in operation have been flaring up the banking situation in the economy. The level of non-performing loans is recognised as an indicator for assessing banks credit risk, asset quality and efficiency in allocation of resources to productive sectors. The committee on financial system has expressed concern over the erosion in the quality of assets of which non-performing advances constitutes the bulk. The fund lock up in NPAs is not available for productive use. The present book is an attempt to diagnose assest quality and level of non performing assets of commercial banks with refernce to backward region.