Following a sharp rise in slippages witnessed in recent quarters, it is obvious that banks are increasingly getting concerned about the growing non-performing assets (NPA). No business is without risk and banks arent exceptions. But the high quantum of NPAs is worrisome, especially when the economic recovery is picking up and Indian banks have an important role to play for sustained growth. NPAs are a bane of banks. Stringent regulatory norms require banks to make higher provisioning for NPAs, affecting profit, which is already under stress. Unlocking the value of NPAs by exploring various options should be the top focus.
Srinivasan Umashankar, Nagpur