Published Paper Details:

Background: The banking sector has a very important impact on the Indian economy and its importance cannot be overemphasized. The Bank plays the role of mobilizing deposits and disbursing credit to different sectors of the economy. One of the valuations of the banking sector in India is the issue of non-performing loans. The aim of the study was to examine the factors of non-performing loans in the context of the Indian banking sector. To study the NPL factor, the study used factors such as bank and social factors. The specific factors of the bank are the rapid growth of credit, monitoring and evaluation of benefits and risks, while social factors are political intervention and bankers' inefficiency etc. Objectives: The specific objective of this study was to examine the factors of non-performing loans in the context of the Indian banking sector. Research Approach/Methodology/Design: The study used research in associations where questionnaires were administered randomly to 200 bank executives in West Bengal. Responses from bank executives were analyzed using frequency tables, graphs and factor analysis.. Originality: This paper is absolutely original in terms of its methodology . The methodology used for this study is absolutely new and pure for our country because no such comprehensive and remarkable study based on primary survey is done earlier. Findings: The results revealed that the borrowers who were accepted by violating the evaluation conditions, the banks 'knowledge of the customers' previous credit history, good understanding of the loans, and the poor assessment of the risks caused the bad loans. Research also shows that strict loan monitoring has an impact on bad loans. The results also indicate that if the loan is not properly evaluated, it can turn into non-performing loans even if appropriately monitored. The study also showed that interest has a weak relationship with non-performing loans and is not an important factor affecting the former. In addition, the study also revealed that rapid credit growth has a significant impact on non-performing loans. This research shows that because of competition, the terms of loans or the use of high-risk investment options are settled by banks that cause bad loans. Besides the bank's factors, social factors are also identified in this research. The study indicates a strong relationship between bankers' inefficiency and political interference in non-performing loans. This research shows that banks are under pressure under political influence and settling credit conditions that lead to bad loans. Factor analysis showed that there are several factors(Researcher takes twelve factors) affecting non-performing loans in India of which some factors carry the highest factors in loading which means that these twelve factors are the most important. Moreover, research results show that properly trained and qualified bankers increase the quality of loans. Value Addition: This study may clear the concept of factors of non-performing loans. This innovative work on non-performing loans and its factors will not only help the entire Indian banking sector to control non-performing loans, but it could also be a generalization in other.