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Title: Loan recovery management and its impact on banks performance (With special reference to banks in Bangalore city)

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Title:
Loan recovery management and its impact on banks performance (With special reference to banks in Bangalore city)
Author Name:
Dr. S. umakanth*, Dr. Soma Sharma**
Abstract:
Banking sector plays an important role for flourishing economy. Basically bank does the role of accepting deposits and lending for various sectors. Lending business has lot of credit risk which arises from the failure of borrower to fulfill its obligations either in payment of principle or payment of interest hence non-performing assets are one of the major concern. The failure of banking system in the economy might have adverse effect and impact on all sectors. The major concern for Indian banking system is non-performing assets. Non-performing asset reflects the performance of the banks. Higher level of NPA’s suggests high probability of credit defaulter and it has impact on banks profitability and net-worth of banks. The presence of NPA involves the creation of provision which will reduce overall profitability and shareholder’s value. Hence in this study an effort is made to study the impact of NPA’s on banks performance. In this study both primary and secondary data are being used to study the problem stated. Primary data is collected through structured questionnaire which are collected through employees of private and public banks having minimum five years of work experience and secondary data is collected though journal. The results indicate that the market share and profits are affected due to presence of NPA’s and securitization act does not empower the banks to reduce the NPA’s. Key words: - NPA, Banking Sector
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