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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