Introduction to Non-Performing Assets in Banking Sector:
The non- performing assets are the factors which are happened in all kinds of banks throughout the world. India is not only the country which is facing this problem of non-performing assets but there are many other countries that are facing the similar kind of problems. If the company or an individual is not able to pay the repayment or payment of interest to their loans then these aspect leads to the problem called nonperforming asset.
India have got the prudential standards but with the specific legal barriers and the time taking aspect of the asset which leads to the disposal process. The problems which are happened within the funding process will be postponed to obtain more earnings and the utilization of the manipulation techniques by making use of the political supports.
In India several numbers of the banks are into the malpractices, mismanagement as well as the fake and fraudulent acts. In order to earn higher financial returns and even because of the above mentioned factors the banks will happen to be destroyed and ruined.
The actual problem is that the banks are not willing to invest on the essential amount of assets in the form of the independent debits. Another problem is that the non- performing assets belongs to the private activities which are economically as well as politically unwanted and disagreeable. (jaya shukla, 2010)