Comparative study on non-performing assets of selected private and public sector banks
The banking industry which is essential to the development of an economy often play with non-performing assets. An asset for which the borrower has not paid the interest or principal for the given period of time, it is referred to as a non-performing asset in India. This is as per the as per compliance in accordance with the guidelines issued by RBI. As non-performing assets increase, banks become more cautious in the disbursement of the loans. As a result, there is less flow of credit to industries which in turns creates a problem of payments.