Summary |
Banks are the significant players in the Indian financial market. They are the biggest purveyors of credit and they also attract most of the savings from the people. The banking industry is dominated by 28 public sector banks (PSBs), which comprise of state bank of India and its seven subsidiaries, nineteen nationalized banks and one new PSBi.e. IDBI bank ltd. They control nearly 80percent of the banking business in India, which acted as efficient partners in the growth and development of the country. The banking sector in India has undergone remarkable changes since the economic reforms initiated in 1991-92. The reform measures along with reserve bank of India (RBI) effort to adopt international banking standards and best practices as prescribed in the basel accords have no doubt helped enormously the banking industry to enter a new era. In the background of these complex changes, the Indian banking sector especially the public sector banks have been facing the challenge of NPAs (Non performing assets). The PSBs are adopting many measures to reduce the NPAs by the guidelines of RBI and the recommendations of various committees with the objective of reducing the average level NPAs. The ratio of NPAs to total advances of scheduled commercial banks, which was around 15.7 percent of the end march 1997 has came town to 3.3 percent by end march 2006. Similarly net NPAs, which was around 8.1 percent in 1997, came down to 1.2 percent in March 2006. This was possible owing to policy support and efforts and initiatives taken at banks level for monitoring and managing the NPAs. Besides covering the theoretical aspects; i.e. history and growth of commercial bank in India, problems and challenges of PSBs & banking sector reforms in India. The book places considerable emphasis on analysis of management of NPAs of various concepts. It is sure the book will be immensely useful to students, academicians, researchers, practitioners in bank management and financial institutions field.
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