Non-Performing Loans in Emerging Economies – Case Study of India

  • Sriharsha Reddy Assistant Professor (Finance & Accounting) Institute of Management Technology (IMT), Hyderabad, India.


Recovery of non-performing assets is considered as one of the biggest problems for the entire banking industry as the earning capacity and profitability of many banks are adversely affected by the high level of NPAs. In this paper an attempt is made to outline the problem of NPAs in Indian banking system. The objectives of the paper are to observe the trends in the incidence of NPAs in Indian banking system, to understand the problem of NPAs in India in comparison with select economies in the world and to outline the policy measures to curtail incidence of NPAs in India. It is observed that the public sector and to some extent the private banks accounts for the bulk of the NPA problem during recent years due to global financial turmoil. Thus, while the policies that have been implemented to address the NPA problem may have been largely successful, there are further steps that can be taken by the RBI as well as by the banks themselves to tackle the problem of NPAs.

Author Biography

Sriharsha Reddy, Assistant Professor (Finance & Accounting) Institute of Management Technology (IMT), Hyderabad, India.

Dr. K. Sriharsha Reddy is Assistant Professor in the department of Finance & Accounting at IMT Hyderabad. He has a Ph. D in the area of banking sector reforms from Center for Economic and Social Studies in collaboration with BRAOU. He has done MBA (Finance) from Osmania University, Hyderabad. Dr. Reddy has more than 15 years of experience in academics and industry. He is associated industry associations like CII, FICCI, ASSOCHAM. He has over 20 publications in journals and edited books and his areas of interests are banking, corporate finance, financial inclusion and wealth management.

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