Published Paper Details:

The economic growth of a nation is largely dependent on the financial system of the country. A solid financial system supports economic growth and improves the standard of living of a country by offering variety of services. Banking sector is an indispensable part of the Indian financial system which engages in services that are supportive of the developmental plans of the country. Channelizing funds from savers to borrowers for productive purposes is a primary function of all the banks. Banks perform social services by indulging in priority lending and employment generation. However, extending loans to the borrowers have become a serious issue. It is not necessary that accumulating more assets would generate more profits. Nowadays banks are dealing with the problem of non-repayment of interest and principal amount by the borrowers. The non-repayment of interest and advances have significantly affected the profitability and operational efficiency of the banks. Banks must ensure stability in profits and maintain the quality of their assets as they are crucial for the growth of the banking sector and the economy in general. Thus, the study aims to develop a strong conceptual understanding of non-performing assets and addresses the issue of non-performing assets in the banking sector in detail by referring to the existing studies. The present study constructs a theoretical background for the future studies on non-performing assets in the banking sector.