| Abstrakt: |
This study investigates the influence of Non-Performing Assets (NPAs) on the financial performance and profitability of banks, with a focus on the significance of credit risk management in maintaining financial stability. Credit risk arises when borrowers fail to meet their repayment obligations, posing a challenge to banks' financial health. The research aims to assess how NPAs affect profitability, liquidity, and the overall operations of Indian banks, particularly in the public sector, and explore strategies to manage these risks effectively. The research follows a quantitative approach, relying on secondary data from sources such as bank financial reports and RBI publications. The analysis focuses on evaluating credit risk management practices and their relationship with NPAs, applying statistical methods to draw meaningful insights. The study also examines key RBI guidelines related to credit risk and NPAs. Results reveal that efficient credit risk management, including strong asset monitoring and timely recovery efforts, can significantly reduce the negative effects of NPAs on bank performance. The study recommends adopting comprehensive risk assessment strategies, enhancing recovery processes, and implementing stricter asset quality controls. The research highlights the importance of improving credit risk management practices in public sector banks to reduce NPAs and strengthen their overall performance. Addressing these issues will help banks improve profitability, enhance investor confidence, and contribute to greater financial sector stability. [ABSTRACT FROM AUTHOR] |
