Author(s) :   Sushil Kumar

Abstract : Non-Performing Assets (NPAs) have persistently undermined the stability and profitability of Indian banks, especially public sector banks. This paper provides a comprehensive analysis of the internal and external determinants of NPAs in Indian banking from 2008 to 2018. Drawing on secondary data from the Reserve Bank of India, case studies, and a robust review of literature, the research identifies the roles of credit appraisal failures, governance lapses, political interference, economic slowdowns, sectoral crises, and regulatory shortcomings in driving the NPA crisis. The paper is structured into sub-sections covering theoretical perspectives, empirical trends, sectoral patterns, and the interplay between bank-specific inefficiencies and macroeconomic shocks. Enhanced analysis using trend, comparative, and regression techniques reveals that both bank-specific inefficiencies and macroeconomic shocks have driven the NPA crisis. The findings highlight the urgent need for integrated reforms, including robust risk management, improved governance, and responsive regulatory frameworks.

DOI : https://doi.org/10.61161/ijarcsms.v6i11.2

Pages : 84-87

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