Vol. 6, Issue 2, Part C (2024)

Non-Performing Assets have become barriers to the Indian Economy for the development. The banking sector in India is facing serious problems in the increasing NPAs. They are directly impacting the profitability of banks. Based on the recommendations of Narasimham Committee and Verma Committee, some steps have been taken to solve the problem of NPAs in the balance sheet of the banks. NPAs not only affect the growth of banks but also the economy as a whole. RBI implemented several prudential and provisioning norms to pressurize the banks to improve the efficiency and cut down NPAs to improve the financial health in the banking sector. This paper analyses the position of NPAs in selected banks namely State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB) for the period from 2011 to 2021 and an attempt is made to understand the concept of NPAs and also study about the progress on the recovery of NPAs through various channels. NPAs have to be managed properly to improve the efficiency and profitability of banks in India.