Trends, Determinants and Impact of NPA on Indian Banking Sector

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The book delves into the critical role of credit risk in banking, highlighting its impact on profitability, particularly concerning non-performing assets (NPAs). It reveals that rising NPAs correlate with decreasing profitability in both public and private sector banks. Key determinants, including cost of funds and various economic indices, significantly influence NPA levels. The author emphasizes the need for banks to enhance their capital base and manage specific and macroeconomic variables to effectively control NPAs and improve financial health.