Bank Authorities Perception towards Causes and Reasons for Mounting NPAS

Abstract

The study work with twin objectives of measuring the perception of bank authorities towards primary reasons for NPAs occurrence and to identify the measures for prevention measures to be taken in restricting NPA and timely recovery of loans. The present study is both qualitative and quantity in nature. A well-structured questionnaire was prepared to identify bankers’ perception towards NPAs prevention, recovery and management mechanisms. The study adopted cluster Sampling Procedure (Probability) for defining the entire population of banks those have head office both in India and at Coimbatore city and further the researcher has adopted convenience sampling techniques for collection of primary data. The study findings revealed that 80 per cent (mean score of 5.60) of the bank employees’ opined that due to the increase of Non-Performing Assets they have cash flow restrictions and they required plenty of time and efforts for handling and managing NPA and it was ranked in the first position. Further, study observed that majority i.e., 76.40 per cent (mean scoreof 3.82) of the bank officers’ have opined that the primary reason for the NPA was the officials negligent on pre-enquiry before sanctioning the loan and it was ranked in the first place. The study suggest that the PSBs to practice well-planned training programmes for its employees. PSBs should offer required training to their staff on credit management. As well, trained professionals are expected to be the exports in their chosen field i.e., credit management. PSBs should train their employees about the credit recovery skills, as in today’s competitive business environment, these skills should be extended among the staff members for timely recovery of loan, as practiced in private sector banks.