RECOVERY OF NPAS- BECOMES THE CRITICAL PERFORMANCE AREA (CPA) FOR BANKS IN INDIA

With a view to enhance operational efficiency, procedure, policy, productivity, profitability and with the objective of implementing best practices in Indian Banks especially with regard to income recognition, assets classification and provisioning for advance portfolio of banks, and recognition of Non-Performing Assets and gradually strengthening the financial position of banks.
After the Nationalization of banking sector, the Indian banking and financial system has made commendable progress in extending in geographical spread and financial reach. The banking industry in India is also undergoing rapid changes with the introduction of financial sector reforms and follow-up actions by Reserve Bank of India based on the Narasimham Committee recommendations.