Npa in Psbs in India Essay

4111 WordsOct 28, 201217 Pages
INTRODUCTION After liberalization the Indian Banking Sector developed very apreciate.The Reserve Bank of India also nationalized good amount of commercial banks for providing socio economic services to the people of the nation. The Public Sector Banks have shown very good Performance as far as the financial operations are concerned. If we look to the glance of the financial operations, we may find that deposits of the public to the public sector banks have increased from 859,461.95 crore to 1,079,393.81 crore in 2003, the investment of public sector banks have increased from 349.107.21 crore to 545,509.00 crore, and however the advances have also been increased to 459,351.16 crore from 414,989.36 crore in 2003. The total income of the public sector banks have also shown good performance since the last few years and currently it is 128,464.40 crore.The public Sector Banks have also shown comparatively good result. The gross profit of the public sector banks currently 29,175.26 crore which has been doubled to the last to last year, and the Net Profit of the Public Sector Banks is 12,295,47 crore. However, the only problem of the Public Sector Banks these days is the increasing days are the increasing level of the non-performing assets. The non-performing assets of the public sector banks have been increasing regularly year by year. If we glance on the numbers of non-performing assets we may come to know that in the year 1997 the NPAs were 47,300 crore and reached to 80,246 crore in 2002. The only problem that hampers the financial performance of the Public Sector Banks is the increasing results of the non-performing assets. The non-performing assets impacts drastically to the working of the banks. The efficiency of banks is not always reflected only by the size of its balance sheet but by the level of return on its assets. NPAs do not guarantee interest

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