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Scholars Journal of Economics, Business and Management | Volume-2 | Issue-07
A Study on Non-Performing Assets of Foreign Banks in India
Sarojit Mondal
Published: July 31, 2015 | 93 97
DOI: 10.36347/sjebm.2015.v02i07.016
Pages: 768-772
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Abstract
Banking sector has been playing an important role in the development of our country. In India banking sector includes Foreign Banks also Banks have been facing various types of risks, such as credit risk, liquidity risk, interest risk, market risk, operational risk and management risk. Apart from these risks the very important risk is loan recovery. The sound financial position of a bank depends upon the recovery of loans or its level of Non-performing assets (NPAs). The Indian banking sector is facing a serious problem of NPA which may bring down the overall profitability of banks. The study seeks to observe the volume and trend of NPA of Foreign Banks in India in comparison to gross and net advances. For this study, data have been collected from secondary sources and simple statistical tools, tables have been applied. The results show that during the study period, i.e. from the year 2001-02 to 2012-13, percentage Non-Performing Assets to total assets and percentage of Non-Performing Assets to Gross & Net Advances of Foreign Banks in India has been decreasing.