Reduction in the gross npa of banks is the amount that was written off and ultimately debited to profit and loss accounts. RBI or The Reserve Bank of India submits the reports to the government on the trends and progress of banking in India.

This report analyses the trends and progress of the banking sector. There are separate captions in this report, such as perspectives, policy environment, performance, and operations of commercial banks and development of various banking and non-banking financial institutions. Banks and financial institutions have been taking the help of nclt lawyers Mumbai to resolve the cases.

What are the issues in NPA?


There has been a great impulse in the credit demand because of the slowdown in the domestic as well as global market. Let’s look into some common issues. Banks have improved after a long, stressful time of economic stress. But the challenge is not limited to banks only. There are challenges for non-banking companies and cooperative banks as well.

According to experts, issues such as the resolution of stressed assets, frauds, and weak corporate governance also need to be addressed. Then only, it will be possible to reaffirm the robust financial sector in our country. Establishment of national company law appellate tribunal has given forum to the banks where they can raise disputes and get resolution.

These are some ways of minimizing systematic risks by seeking the help of DRT legal solutions. So far, performance indicators for banks are considered capital adequacy, liquidity standards, fund and recoveries, and of course, non-performing assets as well. The Gross NPA ratio of commercial scheduled banks has dropped after 2019 after a consistent increase for a few years. The credit goes to the recognition of npa recovery process and the effective ways of resolving it. Studies show that the problem of NPA has been tackled better by understanding the issues better.