MANAGEMENT OF NON PERFORMING ASSET IN BANKS: BOOM AND BOON OR BANE(Pages 43-53) by Dr. Suhasini Parashar in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

In the changing global scenario , size of the bank depends on extent of the market. International cooperation has regulated in prescribing minimum standard of supervision of banks. Efficiency of banking system serves the needs of customers which generate profit. The behaviour of borrowers’ tendency is to undertake riskier projects. An adverse selection in resources effect the safe borrowers with riskier projects and lower the profits , as moral hazard effects the banks’ efficiency .The advanced technology make the business more cost effective. Business management is through investment banking , investors securities, reserves, treasury and asset, audit finances, technology , credit creation and credit control , money supply and rate of interest in procedure ,as operational risk, reputational and legal risk, overall in case of credit, liquidity and interest rate risk to keep pace with the changing environment worldwide. Nonperforming assets (NPAs) identification encourages to avoid the losses which depreciates its assets and effecting the financial health of bank. Prudential norms are income assets, capital adequacy, and recognition. The main concerns becomes restructuring poor performing banks through corporate governance, improvement in system through development of human resources , information technology, institutionalism of proper quality adopted by Indian banking system , avoiding the wastage , concentrated on ownership and quality of bank management. A significant improvement in social objectives are projects in the backward regions, small scale sector, started by new technicians and entrepreneurs, mass consumption products , export promotion etc. In this article, the main focus is on theoretical analysis of nonperforming assets as bottle neck in boom/boon in form of management of efficiency of banking system in the context of banking sector reform in economic development, social objectives, factors, causes and effect and parameters of NPAs. NPAs is a cause of great distress effect the strength, weakness, opportunities and threats in uncertain competitive business environment of Indian banking system .
Keywords: Analysis, Behavior, Efficiency, Governance, Management.