A COMPARATIVE STUDY OF NPA IN INDIA IN THE GLOBAL CONTEXT: PERSPECTIVES, ASSESSMENT & SOLUTIONS
Keywords:
Asset Reconstruction Companies (ARC), Banks, Economy, Loan, Non-performing Assets (NPA).Abstract
Rising level of Non-Performing Assets has been a global issue for a long time now. In India, official reports of the RBI have been evidently depicting the vulnerability of Indian Banks with respect to their Non-Performing Assets. For combatting the issues of such stressed assets, various provisions and policies have been applied till date with an aim to control and manage the level of NPA among the Indian Banking sector. But much to the dismay, no policy could become an ultimate remedy for dealing with the issue of stressed assets in India. Therefore, Bad Banks have been the talk of the town lately as a prospective measure for managing the NPAs. Bad Banks have been in use for ages now and different countries have had different experiences with such corporate structures. This paper aims to compare the banking structures of countries having substantial similarities with the Indian Banking structure, with that of the Indian Banking structure, and thereby draw a conclusion regarding the prospective success of the Bad Banking Model in India. We have used a non-parametric analysis to compare the effectiveness and efficacy of China's and India's banking institution.
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