Liquidity Analysis and Non-Performing Assets Management: A Study of Selected Commercial Banks in India

Abstract

The Indian banking sector has faced major challenges with the rise in non-performing assets (NPAs). The growth of NPAs has a direct impact on the profitability of banks. Non-performing assets are one of the major concerns of scheduled commercial banks in India. NPAs affect liquidity and profitability, in addition to threatening the quality of assets and survival of banks. The problem of NPAs affects not only banks but also the entire economy. There is a need to reduce NPAs to improve the financial viability of the banking system. An effort is being made in this article to learn the status of gross NPA and net NPA of commercial banks in India. In addition, researchers have investigated the growth rate of NPA of commercial banks in India. Finally, an attempt has been made to analyse the impact of NPA management on the liquidity position of commercial banks in India