Role of Increasing Levels of Non-Performing Assets in Bank’s Deteriorating Financial Position After COVID: A Review of Literature
After the 2009 planet-wide crisis, Non-Performing Assets (NPA) have seen an unprecedented rise. Along with the Indian Government, the Reserve Bank of India (RBI) introduced rules and provided guidelines to control the increasing amount of NPA, but failed to do so. The ever - NPA level has contributed to a decline in the bank's revenue and profitability level, adding further to its failures. The report contains an analysis of literature published by renowned scholars on rising NPA and bank failures. The report provides an overview of the diverse perspectives of experts and regulators. It reviews a total of 105 academic papers published in leading journals. The key aim of the report is to address the multiple factors instigating the NPA's growing degree. It also discusses the role of these factors in the failure of the numerous banks following Covid 19. It is undisputed that the journey to recovery is incredibly long, but the study proposes steps to control and decrease increasing NPA levels that can be taken.
Keywords:Banks, Non-performing Assets, Bad Loans
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