Shenbagavalli R


The global rating agency, MOODY’s recently in its report of 2013 as rated that the Indian Public Sector Banks from ‘Stable’ to ‘negative’. The RBI is also observed that in 2012-13 the NPAs of public Sector Banks were significantly increasing due to the poor asset quality and ineffective information systems. The study was taken with an objective of analyzing the impact and effect of NPAs of public sector banks and to suggest the suitable strategies to control and manage NPAs. The sample size taken for the study was 120 and the data was collected by way of questionnaire. The risk matrix for NPAs explains that the cause for NPAs are the internal and external factors among which the willful default by the borrower(external) and inefficient credit appraisal system(internal) are the key determinants. The findings of the study were to suggest the steps to minimize the credit risk and control the NPAs. The various factors determining the NPAs of Public Sector banks at higher degree are identified and various suggestions are given to minimize the NPAs.



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