Bank Risk Management in India
Published in
1 min readJun 4, 2019
CURRENT SCENARIO:
In the past 2 years, Indian banks have seen rapid growth in stressed assets with NPAs climbing from 3% to 13% of the total assets. In 2017–18 the GNPA ratio rose to 23.1 % from 18.1% last year. The primary culprits of this have been Public Sector Banks who have given and renewed loans to unworthy corporates like Nirav Modi, Kingfisher Airlines.
STRATEGIES TO CONTROL NPAs
- Preventive Management: Preventive Management is to save the asset from becoming NPA. This involves maintaining due diligence and doing proper credit assessment before granting loans.
