NON- PERFORMING ASSET: ISSUES AND CHALLENGES IN INDIA

Non-performing assets (NPAs) are a key source of concern for Indian banks because they reflect badly on the performance of the banks. High NPAs signal a high risk of mass loan defaults, which can damage bank profitability and net value. Banks must set aside provisions to compensate for NPAs, which affects their total earnings and shareholder value. The issue of NPAs has received a lot of attention in the Indian financial sector. NPAs have an impact on the entire economy, not just banks. In truth, the high number of NPAs in Indian banks is only a reflection of the industry's and trade's general health. NPAs are higher in public sector banks than in private sector banks. Banks must schedule NPAs in order to increase efficiency and profitability. The government has made a lot of initiatives to reduce NPAs, but it will be difficult to totally remove them. However, by competing with global banks, Indian banks can attempt to meet worldwide standards. NPAs cause losses and poorer profitability in banks and the financial system, as well as an asset-liability mismatch. This is ultimately determined by how effectively banks handle various risks in their operations. The purpose of this research is to identify the issues that Indian banks confront by the NPA. These concerns and challenges were identified using secondary data from diverse sources. Then suggestions are offered about how to overcome these challenges. Keywords: Banking, NPA, asset, debt, default, challenges.