High level of NPAs in PSBs

Abstract

The stressed asset that includes the GNPAs and Restructured Advances is a major problem for Banking Industry. The PSBs are the worst hit by growing NPAs in the industry. A comparative study of all the groups of banks reveals that PSBs are the most inefficient sector in the banking industry in dealing with stressed assets. The government has taken many steps to mitigate the NPAs problem by infusion of capital in the PSBs, introducing ‘Indradhanush Yozna’ for better management, prompt corrective actions to safeguard the interest of the depositors, and enactment of ‘The Insolvency and Bankruptcy Code, 2016’ for speedy recovery and selling of assets.