Factors affecting non-performing assets in Indian banking system: An analysis of employee’s perception
Keywords:
Keywords: Banks, Non-Performing Assets (NPAs), Bank employees, Lack of experienced staff, Poor borrower information.
Abstract
Abstract The presence of non-performing assets (NPAs) has a significant impact on a bank's solvency, profitability, and liquidity. This research aims to investigate the perception of bank employees regarding the occurrence of NPAs in SBI, ICICI, HDFC, and PNB. A structured questionnaire was administered to bank employees to gauge their perspectives on NPA occurrence. The study also identifies various variables influencing NPAs and provides suggestions for expediting their recovery. The paper identifies and analyzes the causes influencing non-performing assets (NPAs), and suggests appropriate strategies for monitoring and control. The statistical tool SPSS was employed for factor analysis testing. The study compares and analyzes the factors influencing NPAs in both sectors. Some identified reasons for NPAs include Siphoning of funds for other purposes and ineffective monitoring. Lac in credit appraisal, Economic downturn Political pressure, etc.,
References
Sharma, P., and Mathur, N., (2020). A Comparative Study on Public & Private Sector Banks : A Special Reference to Financial Performance , Non- Performing Assets and Employee Morale. 10.46528/JK.2020.V10I08N02.11.
Ravi Kumar.B , B.V.S.S.Subba Rao, G.D.V.Kusuma(2018) “ Genesis for increase of NPAs in Indian banks- An Empricial Analysis” Journal of Banking and Finance Management 1(1): 1-8
Tanmaya Kumar Pradhan (2012) “ Management of NPA in the commercial banks in Odisha, an Empirical Analysis”- International Journal of Scientific and Research Publications, 2(9)
Kandpal, V. (2020). Non-performing assets in India: A critical analysis of public and private sector banks. Corporate Governance and Sustainability Review, 4(1): 65-73
Agarwala, V., & Agarwala, N. (2019). A critical review of non-performing assets in the Indian banking industry. Rajagiri Management Journal, 13(2): 12-23.
Sharma, S., Rathore, D. S., & Prasad, J. (2019). Empirical assessment of management of non-performing asset (NPA) in the public and private sector banks. Journal of Statistics and Management Systems, 22(3): 587-601
Chakraborty, A. (2012). Employees’ Perception towards NPAs: A Comparative Study of Public Sector and Private Sector Banks. Business Spectrum, Volume-I, No.-3, January-June 2012, ISSN-2249-4804
Ashima GABA Dr. Ravinder Kumar, (2018). Non-Performing Assets and Profitability: A Study of Private Sector Banks in India. International Bulletin of Management and Economics, (9): 20-30.
Bhargava, S., & Khan, Z. (2019). The impact of non-performing assets on the financial performance of Indian commercial banks. Journal of Financial Management & Analysis, 38(2): 1-11.
Das, A., & Dash, N. (2018). Factors affecting non-performing assets of Indian commercial banks: An empirical study. Journal of Accounting in Emerging Economies, 17(1): 1-14.
Gupta, M., & Sharma, S. (2017). Impact of non-performing assets on profitability and capital adequacy of Indian commercial banks. International Journal of Accounting and Finance Management, 29(1): 116-133.
Khanna P, (2017). Managing Non Performing Assets in Commercial Banks. Gian Jyoti E-Journal, (1): 153- 163.
Krishna Banana1, V.Rama Krishna Rao Chepuri,(2017). A Study on Non-Performing Assets of Indian Commercial Banks. International Journal of Research Culture Society, (1): 40-45.
Sontakke, R. N., & Tiwari, C. (2013). Trend analysis of non-performing asset in scheduled commercial banks in India. International Journal of Application or Innovation in Engineering & Management (IJAIEM),(3): 2319-4847.
Samir, & Kamra, D. (2013). A comparative analysis of non-performing assets (NPAs) of selected commercial banks in India. International Journal of Management, 3(1): 68-80.
Sarkar, J., & Sarkar, S. (2018). Bank ownership, board characteristics and performance: Evidence from commercial banks in India. International Journal of Financial Studies, 6(1) :17.
Selvarajan, B., & Vadivalagan, G. (2013). A study on management of non-performing assets in priority sector reference to Indian bank and public sector banks (PSBs). International Journal of Finance & Banking Studies, 2(1): 31-42.
Kumar.B,B.V.S.S.Subba Rao,G.D.V.Kusuma(2018) “Genesis for increase of NPAs in Indian banks- An Empricial Analysis” Journal of Banking and Finance Management 1(1): 1-8
B.S, Lalitha.B.s. (2022). Study of Non-Performing Assets in Selected Banks. International Journal of Commerce and Management, 4(7), 1-10.
Manu KS, Maheshwari R (2018). Relationship between Non-Preforming Assets (NPA) and Profitability of Development Banks: The Case of India. Asian Journal of Research in Banking and Finance 8(6):99- 111
Naveenan, R.V. & Levi, Sriyank & Merlyn, Sarah. (2020). Effectiveness of NPA Control Measures in Managing Loan Assets in Banks. 6. 2394-3351.
Naveenan, R.V. (2016). “Warning Signals- A tool to control NPA in the banks”. International Journal of Advance Research in Computer Science and Management Studies, 2016, Vol. 4, No. 7, pp. 280-288.
Rajaraman I and Garima Vasishtha, (2002) “Non-Performing Loans of PSU Banks: Some Panel Results”, Economic and Political Weekly, ( 37) : 429-431
Sharma, Sunita and Rathore, D.S. and Prasad, Jagdish, Evaluating the Factors Impacting Non Performing Asset in Banks through Factor Analysis Approach (March 22, 2019). Proceedings of International Conference on Sustainable Computing in Science, Technology and Management (SUSCOM), Amity University Rajasthan, Jaipur - India, February 26-28, 2019, Available at SSRN: https://ssrn.com/abstract=3358121 or http://dx.doi.org/10.2139/ssrn.3358121
Ravi Kumar.B , B.V.S.S.Subba Rao, G.D.V.Kusuma(2018) “ Genesis for increase of NPAs in Indian banks- An Empricial Analysis” Journal of Banking and Finance Management 1(1): 1-8
Tanmaya Kumar Pradhan (2012) “ Management of NPA in the commercial banks in Odisha, an Empirical Analysis”- International Journal of Scientific and Research Publications, 2(9)
Kandpal, V. (2020). Non-performing assets in India: A critical analysis of public and private sector banks. Corporate Governance and Sustainability Review, 4(1): 65-73
Agarwala, V., & Agarwala, N. (2019). A critical review of non-performing assets in the Indian banking industry. Rajagiri Management Journal, 13(2): 12-23.
Sharma, S., Rathore, D. S., & Prasad, J. (2019). Empirical assessment of management of non-performing asset (NPA) in the public and private sector banks. Journal of Statistics and Management Systems, 22(3): 587-601
Chakraborty, A. (2012). Employees’ Perception towards NPAs: A Comparative Study of Public Sector and Private Sector Banks. Business Spectrum, Volume-I, No.-3, January-June 2012, ISSN-2249-4804
Ashima GABA Dr. Ravinder Kumar, (2018). Non-Performing Assets and Profitability: A Study of Private Sector Banks in India. International Bulletin of Management and Economics, (9): 20-30.
Bhargava, S., & Khan, Z. (2019). The impact of non-performing assets on the financial performance of Indian commercial banks. Journal of Financial Management & Analysis, 38(2): 1-11.
Das, A., & Dash, N. (2018). Factors affecting non-performing assets of Indian commercial banks: An empirical study. Journal of Accounting in Emerging Economies, 17(1): 1-14.
Gupta, M., & Sharma, S. (2017). Impact of non-performing assets on profitability and capital adequacy of Indian commercial banks. International Journal of Accounting and Finance Management, 29(1): 116-133.
Khanna P, (2017). Managing Non Performing Assets in Commercial Banks. Gian Jyoti E-Journal, (1): 153- 163.
Krishna Banana1, V.Rama Krishna Rao Chepuri,(2017). A Study on Non-Performing Assets of Indian Commercial Banks. International Journal of Research Culture Society, (1): 40-45.
Sontakke, R. N., & Tiwari, C. (2013). Trend analysis of non-performing asset in scheduled commercial banks in India. International Journal of Application or Innovation in Engineering & Management (IJAIEM),(3): 2319-4847.
Samir, & Kamra, D. (2013). A comparative analysis of non-performing assets (NPAs) of selected commercial banks in India. International Journal of Management, 3(1): 68-80.
Sarkar, J., & Sarkar, S. (2018). Bank ownership, board characteristics and performance: Evidence from commercial banks in India. International Journal of Financial Studies, 6(1) :17.
Selvarajan, B., & Vadivalagan, G. (2013). A study on management of non-performing assets in priority sector reference to Indian bank and public sector banks (PSBs). International Journal of Finance & Banking Studies, 2(1): 31-42.
Kumar.B,B.V.S.S.Subba Rao,G.D.V.Kusuma(2018) “Genesis for increase of NPAs in Indian banks- An Empricial Analysis” Journal of Banking and Finance Management 1(1): 1-8
B.S, Lalitha.B.s. (2022). Study of Non-Performing Assets in Selected Banks. International Journal of Commerce and Management, 4(7), 1-10.
Manu KS, Maheshwari R (2018). Relationship between Non-Preforming Assets (NPA) and Profitability of Development Banks: The Case of India. Asian Journal of Research in Banking and Finance 8(6):99- 111
Naveenan, R.V. & Levi, Sriyank & Merlyn, Sarah. (2020). Effectiveness of NPA Control Measures in Managing Loan Assets in Banks. 6. 2394-3351.
Naveenan, R.V. (2016). “Warning Signals- A tool to control NPA in the banks”. International Journal of Advance Research in Computer Science and Management Studies, 2016, Vol. 4, No. 7, pp. 280-288.
Rajaraman I and Garima Vasishtha, (2002) “Non-Performing Loans of PSU Banks: Some Panel Results”, Economic and Political Weekly, ( 37) : 429-431
Sharma, Sunita and Rathore, D.S. and Prasad, Jagdish, Evaluating the Factors Impacting Non Performing Asset in Banks through Factor Analysis Approach (March 22, 2019). Proceedings of International Conference on Sustainable Computing in Science, Technology and Management (SUSCOM), Amity University Rajasthan, Jaipur - India, February 26-28, 2019, Available at SSRN: https://ssrn.com/abstract=3358121 or http://dx.doi.org/10.2139/ssrn.3358121