BANKING SECTOR- NON PERFORMING ASSETS- A SPECIAL FOCUS ON SBI

Banking sector is the stamina of any economy. Scheduled commercial banks play a key role in the development of the country. As banks have increased their involvement in the development of Indian economy through various schemes like ‘Jan Dhan’, Pension Schemes, etc. The vision being the expansion of financial services to every nook and corner of India for the rapid expansion of various sectors of the economy, with a special focus on industrial sector , too, under ‘ Make in India’, which is the vision of current Prime Minister of India. Banks are playing a key role in Demonetization of currency notes Rs. 500 1000 The banks have too liberalized their lending policies after demonetization by lowering the interest rates on loans. The primary function of lending of banks results in ‘credit risk’ i.e. non- recovery of loans and advances. The failure of banks to manage this credit risk forms the genesis of non-performing assets ( NPAs).The public sector banks perceptibly responsible this deterioration in asset quality. Reserve Bank of India’s stringent guidelines and greater push to declare stressed assets as NPAs. This article focused on identify the reasons for NPAs in Indian banks and to study the existing NPAs in SBI, a Public Sector Bank. Demonetization of currency notes made over flow of funds in the bank and the interest rates on loans and advances have also brought down with liberalization of lending policies. This is challenge for thank to identify a good customers so that to avoid NPAs in future.