Non-Performing Assets and its Impact on Indian Financial Sector

Abstract

Non-Performing Assets are a significant concern for any financial institutions as they can have adverse effects on their financial health and profitability. The presence of high level of NPAs indicates that the bank may face difficulties in recovering the loan amount ultimately resulting in potential losses of the institution. Along with the bank’s financial health situation it impacts the country’s economy to a large extent. Managing and reducing NPAs is crucial for banks and financial institutions to maintain their financial stability and profitability and to ensure the overall health and stability of financial system.