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NPA CRISIS; MANAGING BAD LOANS

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KARTIK UPADHYAY To develop our nation, we must focus on our economy; it involves strengthening our financial stability. One of the measures to create economic strength is to lower the NPA. NPA is an inevitable burden on the Banking industry. India ranks number second globally with a population of over 1.3 billion, which is equivalent to 17.7% of the total world population. 34 Banks (Public and Private) serve this massive consumer base across the Country. The Banking industry is an industry that is the backbone of the Country's economy. It is the most dominant segment of the financial sector. Without a highly effective Banking system, our Country, India, can not have a healthy economy. To understand the above situation, we have to reflect on the concept of NPA. What Is an NPA? How does it affect the financial stability of the Country? Does increment of NPA will lead to a financial crisis? *****************************************