(An Autonomous Apex Institute Established by RBI & Banks)
(An Autonomous Apex Institute Established by RBI & Banks)
Management of Non-Performing Advances (NPAs) is a recurring issue for bankers, given the macroeconomic conditions prevailing in the country from almost a decade; with low recovery from NPAs aggravating this issue. The objective of this study is to bring out the causes of NPAs in banks in India and neighbouring countries, through a survey based approach. The survey data was collected through a questionnaire administered to persons from credit and recovery departments of the banks in India and abroad. For the purpose of collecting primary data on above issues, two questionnaires were designed, one for domestic banks and another for banks in other countries. The analysis is based on 218 responses from Indian bankers and sixty one responses from banks in neighboring SAARC countries. The analysis shows that in case of both India and SAARC countries, diversion of funds / wilful default by promoters is the major factor causing NPAs.