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  • Examining the Problem of Bad Loans at Indian Banks

Examining the Problem of Bad Loans at Indian Banks

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The Banking system of any nation is essential for the development of its economy. Banks are financial institutions that provide banking and other financial services to the society. This study is about Bad loans that are termed as Non-Performing Assets and various measures taken by the Government and the Banks to curtail the huge amount of NPAs in the commercial banks. The NPAs in Public Sector Banks have increased by 6.2 lakh crore between March, 2015 and March, 2018 as per the RBI data. This will lead to scarcity of funds in the security markets, higher cost of capital, higher inflation and lower growth rates. The Reserve Bank of India heads the Banking system in India and was established in 1935.
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