Non-performing Assets (NPAs) are the smoking gun threatening the very stability of Indian banks. NPAs wreck a bank’s profitability both through a loss of interest income and write-off of the principal loan amount itself.

In a bid to stem the lurking rot, RBI issued in 1993 guidelines based on recommendations of the Narasimham Committee that mandated identification and reduction of NPAs. Their implementation immediately pushed many banks into the red. So serious is the problem that an RBI report suggested that reducing NPAs be treated as a ‘national priority’.

This is a definitive book which tackles the subject of managing bank NPAs in its entirety, starting right from the stage of their identification till the recovery of dues in such accounts.

Highlights:

• How to identify non-performing assets

• Asset classification and assessment of provisions

• Pre-sanction appraisal and post-sanction supervision and follow-up

• Monitoring system for existing and potential NPAs

• Rehabilitation of sick non-performing units

• How to reduce risk-weighted assets

• NPA recovery through compromise and negotiated settlement

• Strategies and actionable operational guidelines for reducing NPAs

• Suggestions for improving bank profitability.

Here is an in-depth treatment for managing NPAs in banks by a veteran banker intimately familiar with the subject. The book will thus serve both as a training handbook and an operations manual for practising bankers.