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Rising Non-Performing Assets in India – An Outcome of Willful Default or a Genuine Business Failure?

Author Affiliations

  • 1Department of Management, Shri Jagdishprasad Jhabarmal Tibrewala University, Jhunjhunu, Rajasthan, India

Res. J. Management Sci., Volume 5, Issue (7), Pages 12-14, July,6 (2016)


In India, all the Public Sector Banks put together have registered a net loss of Rs. 18,000 Croes during the financial year 2015-2016 in spite of registering a whooping “Operating Profit” of Rs. 1.40 lacs Crores due to the provisioning for bad loans. There have been cases where the borrowers are genuine and have really suffered losses due to economic slowdown and on account of the default by their debtors. However, there are some corporate and individual borrowers who have resorted to the malpractice of siphoning of the money. Such, borrowers are allegedly doing it willfully, hence, called willful defaulters. In the cases where assets of the borrowers were over-valued and loans were granted in excess of the market value of their assets must be dealt with seriously.


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