Vol. 3, Issue 3 (2018)
Management of NPA in higher education loans: A study on public sector banks in India
Author(s): Ghousunnisa Begum, Dr. P Viswanadham
Abstract: The objective of this paper is to study the basic issues relating to Non-Performing Assets in Higher Education loans through Public Sector Banks. Banks play an important role in the economic development of a country and the banking is exposed to various risk viz credit, liquidity, fluctuating interest rates, market conditions, operational and management changes. Highest of all risks is loan recovery. The financial position of a bank strategizes the recovery of loans or its level of Non-performing assets (NPAs). Lowest NPA rate measures the banks have strengthened their credit appraisal processes over the years and higher NPAs bring down the overall profitability. The magnitude of NPA is comparatively higher in public sector banks in India. NPAs need to be lowered and controlled in improving profitability of banks.