Issue of Npa in Indian Banking Sector

Questions:

1. Issue of NPA in Indian banking sector.
2. Modi government’s achievements in 2 years.

Answers:

1. ISSUE OF NPA in Indian banking sector

NPA, non-performing asset, is a term used in banking system. It is that asset or loan given by bank to a borrower which cannot be recovered. As per RBI, terms loans on which interest or installment of principal remain overdue for a period of more than 90 days from the end of a particular quarter is called a Non-performing Asset.

            The State Bank of India (SBI), the largest government bank, has written off over Rs 41,640 crore as non-performing assets (NPAs) in the last 10 years but failed to recover even one-third of this amount in the same period from bad loan accounts. Since 2011, the SBI’s write-off has jumped 15 times and in 2014-15, its NPAs were more than at least 14 other public sector banks (PSBs).

         The Bank of India, a much smaller bank and fourth largest in terms of assets, wrote off more than Rs 41,361 crore in six years, indicating this amount could be much more than SBI’s write-off for 10 years. The Bank of India has said it does not have information on loans written off before 2009-10. From its bad loan accounts, it could not recover Rs 14,000 crore.

    There are many reasons behind the increasing NPA in indian banking sector. Some of them are: global slowdown and weak demands, regulatory delays in infra sector, no proactive assessment , ageing work force. One of the reasons may be loan were used by corporates in consumption expenditure not in investment, so that expenditure didn't generate new income.

                                 2. Modi government’s achievements in 2 years.

Bjp has completed almost half of its period in delhi and it has been a mixed bag of achievements and some failures. Overall the performance is satisfactory as  a lot of positivity in the mind set of investors as well as the individual has risen. When Narendra Modi took over as India’s prime minister in May 2014, he came to office with virtually no foreign policy experience. Yet expectations ran high. He was successful in establishing some good relations with most of the countries but the relation with Nepal ,Pakistan and china got bittered.