The severity of the NPA crisis4 min read 30 May 2017, 07:49 AM IST
An attempt to revive the banking sector must include a credible commitment of capital
To understand the extent of the non-performing asset (NPA) problem in the Indian banking sector and come up with solutions, it is important to have a good measure of the problem. While the standard measures have their uses, they do not answer the question that everyone seems interested in: How severe is the NPA crisis? We propose a new measure—the ratio of NPAs to bank capital. This measure shows that the crisis is indeed severe, among the worst in India’s history.
Select your Category