Abstract

The rise of non-performing assets (NPAs) has been a major issue for the Indian banking industry. The rise of non-performing assets directly affects banks' profitability. One of the main issues facing India's scheduled commercial banks is non-performing assets. In response to the Narasimham Committee recommendations, several actions have been made to address the issue of old non-performing assets (NPAs) on bank balance sheets. People keep saying that there hasn't been a systematic analysis of the most effective approach to solving the issue. The performance of banks is reflected in NPAs. A high level of NPAs indicates a significant likelihood of numerous loan defaults, which have an adverse effect on banks' profitability and net worth in addition to devaluing the asset. NPAs have an impact on profitability and liquidity in addition to endangering the longevity of banks and the quality of their assets. This study aims to provide an understanding of non-performing assets (NPAs), including their status and trajectory in Indian scheduled commercial banks, the variables that lead to NPAs, the reasons behind the high impact of NPAs on Scheduled commercial banks in India, and the methods by which NPAS are recovered.

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