NPA Crisis Essay for Class 6, 7, 8, 9, 10, 11, 12 and College students. Find a paragraph, long and short essay on NPA Crisis for Students.
NPA Crisis Essay for Students
NPA Crisis Essay 250 Words
Banks are the engines of a country which keep the wheels of the country moving. Banks fail and the economy of the country collapses. The above lines highlight the role and importance of banks in a country. The Indian banking system has also contributed immensely to the development of the country.
However, in recent times, the dark clouds of non-performing assets (NPAs) are looming over the banks in India. The Public Sector Banks currently stands at nearly rupees 8,50,000 crore. One reason for this may be inadvertent lending by banks without checking and analysing the repaying and analysing the repaying capability of the borrowers.
In the country which has led to the twin balance sheet problem. Also, the possibility that the bankers and corporations are hands in the glove cannot be ignored. The recent trend wherein business tycoons like Vijay Mallya and Nirav Modi are felling the country after loan defaults are deplorable.
The government of India has launched mission Indradhanush to recapitalise the banking sector. The new Bankruptcy and Insolvency Cold and Prompt Corrective Action (PCA) framework by RBI is a welcome step. The government is now taking the management of the defaulting company in its own hands to recover the loans given to it. The government is also signing extradition treaties with various countries to catch the defaulters who have settled in foreign countries.
India should resolve to immediate solution of NPA problem. The 2008-2009 economic crisis should how inadvertent lending leads to a collapse of the economy. The balloon of NPA is getting large and adequate steps must be taken before it bursts.
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