Economics at your fingertips  

Non-performing assets in Indian Banks: This time it is different

Rajeswari Sengupta () and Harsh Vardhan

MPRA Paper from University Library of Munich, Germany

Abstract: Growing non-performing assets is a recurrent problem in the Indian banking sector. Over the past two decades, there have been two such episodes when the banking sector was severely impaired by balance sheet problems. In this paper we do a comparative analysis of the two banking crisis episodes-the one in the late 1990s and one that started in the aftermath of the 2008 Global Financial Crisis and is yet to be resolved. We describe the macroeconomic and banking environment preceding the episodes, the degree and nature of the crises and also discuss the policy responses that have been undertaken. We conclude by drawing policy lessons from this discussion and suggest some measures that can be adopted to better deal with a future balance sheet related crisis in the banking sector such that the impact on the real economy is minimal.

Keywords: Non-performing assets; Public-sector banks; Capital adequacy; Bank recapitalisation; Balance-sheet crisis. (search for similar items in EconPapers)
JEL-codes: E44 G21 G28 (search for similar items in EconPapers)
Date: 2017-03-01, Revised 2017-09-16
New Economics Papers: this item is included in nep-ban and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Economic and Political Weekly Issue No. 12.52(2017): pp. 85-95

Downloads: (external link) original version (application/pdf)

Related works:
Working Paper: Non-Performing Assets in Indian Banks: This Time it is Different (2017) Downloads
Working Paper: Non-performing assets in Indian Banks: This time it is different (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2020-05-18
Handle: RePEc:pra:mprapa:81403