Increasing non-performing assets (NPAs) in the banking sector can severely affect the economy in a number of ways. If NPAs are not properly managed, it can lead to financial and economic downturn, leading to a negative investment environment. This study focuses on the management of non-performing assets in Indian public sector banks approach under strict asset classification principles, use of state-of-the-art technical platform based on Core Banking Solution (CBS), recovery procedures. And highlights other bank-specific indicators. The approach of the Reserve Bank of India’s strict regulatory framework is a major hurdle in the study of NPA Bank’s financial performance as it results in lower margins and more provisioning for doubtful loans. Different banks of different categories jointly provide development to different sectors like SSI, Agriculture, Priority Sector, Public Sector and others. These developments need to be controlled after pre-approval assessment and distribution to curb the rising NPAs in the Indian banking sector. The reduction in NPAs is necessary to improve the profitability of banks and to meet the standards of capital acumen as per the Basel Agreement. A comprehensive framework for NPA management has been developed for recovery of NPAs under which several options for debt recovery and restructuring have been provided. This study traces the dynamics of NPAs in Indian public sector banks so that new policy measures and key performance indicators within the scope of the Reserve Bank of India’s regulatory process and the management of non-performing assets.

Keywords: Indian Banking Sector, NPA, Core Banking Solution (CBS), Capital Adequacy Ratio (CAR).

Increasing non-performing assets (NPAs) in the banking sector can severely affect the economy in a number of ways. If NPAs are not properly managed, it can lead to financial and economic downturn, leading to a negative investment environment. This study focuses on the management of non-performing assets in Indian public sector banks approach under strict asset classification principles, use of state-of-the-art technical platform based on Core Banking Solution (CBS), recovery procedures. And highlights other bank-specific indicators. The approach of the Reserve Bank of India’s strict regulatory framework is a major hurdle in the study of NPA Bank’s financial performance as it results in lower margins and more provisioning for doubtful loans. Different banks of different categories jointly provide development to different sectors like SSI, Agriculture, Priority Sector, Public Sector and others. These developments need to be controlled after pre-approval assessment and distribution to curb the rising NPAs in the Indian banking sector. The reduction in NPAs is necessary to improve the profitability of banks and to meet the standards of capital acumen as per the Basel Agreement. A comprehensive framework for NPA management has been developed for recovery of NPAs under which several options for debt recovery and restructuring have been provided. This study traces the dynamics of NPAs in Indian public sector banks so that new policy measures and key performance indicators within the scope of the Reserve Bank of India’s regulatory process and the management of non-performing assets.

Keywords: Indian Banking Sector, NPA, Core Banking Solution (CBS), Capital Adequacy Ratio (CAR).