NON PERFORMING ASSETS MANAGEMENT AND DIGANOSTIC ON PUBLIC SECTOR BANK OF INDIA & PRIVATE SECTOR BANK OF INDIA

Abstract

A strong Banking sector is important for an Indian economy. In our country granting loan by Bank to corporate sector or for household being a main
concern of the bank. After the introduction new Industrial Policy 1991, the bank have become more cautions in extending loans. The reason being
mounting of Non- Performing Asset. The Non-Performing Assets reflect the performance of the bank. The high level of NPA reflects the high amount of
defaults. And ultimately affects the probability of the bank. When the borrowers defaults in the payment of principal and interest of term loans
more than of 90 days then the assets are considered as Non- Performing Assets. With the implementation of the various steps to resolve the NPA with
regular training programme, recovery camp, spot visit, credit appraisal and risk management mechanism. Appropriate SWOT analysis should be done
before disbursement of the advance. Moreover, Bank should organize awareness camp at the gross root level for the defaulters of the banks to
educate them on the various benefits of making regular payment and vice-versa. Good repay master must be encouraged by way of some gifts and
religious tour for reducing the NPA. To overcome the potential and board line accounts. So that they do not step into NPAs categories. The present proper makes an attempt to identify the causes of NPAs in regional rural bank of Jharkhand and also to suggest few strategies for reducing then.