Non-performing Assets in Indian Public Sector Banks- Where are we heading?
 
Indian banking sector has contributed significantly to India’s economic growth in the last twenty years. However, since the last few years the non-performing assets of public sector banks have continued to swell and have reached the staggering level of 2.78 lakh Cr. (Gross) as of FY 2015, NPAs have compounded annually at the rate of 19% over the last ten years. In this session of “Slice of Policy”, Amrita Chakraborty, Analyst at Bharti Institute of Public Policy looked into, how the banking sector is trapped in the vicious cycle of NPAs. Are the NPAs a legacy or aftermath of the global economic crisis? Or, are there other more significant reasons? She refers to the lending to different sectors in seeking answers.