Study of NPA Trend and Basel Norms : Statistical Evidences

Nonperforming asset are those asset or loan where the payment is due or in default. There are criteria’s for terming a loan as default as well as to differentiate on the basis of categories. Banking industry as a whole is suffering from the issue of NPA and Indian banking industry is also under its ambit.BASEL committee on banking supervision had taken various steps from time to time to combat this issue by giving various guidelines like BASEL 1, BASEL 2 and BASEL 3. This paper tries to analyze the current situation of Nonperforming Assets of Indian Banking Industry and also tries to show the capital to risk weighted asset guidelines of Basel and its effectiveness on the NPA reduction of Banking Industry for this reason this paper is divided into four sections, section one give the details of NPA ownership wise second section gives the details of NPA category wise third section talks about recovery mechanism of NPA and last section shows the details of CRAR as maintained by banks. The study tries to give an holistic view of Nonperforming assets and tries to give the problem associated with NPA mechanism which will help researched in further studies