2025, Vol. 6, Issue 1, Part J
Impact of non-performing assets on credit risk in Indian Banking Sector
Author(s): Surbhi Vyas and Seema Parveen Khan
Abstract: This study investigates the impact of Non-Performing Assets (NPAs) on credit risk in the Indian banking sector. With rising loan defaults, NPAs have become a critical challenge, directly influencing the stability and profitability of banks. Using panel data analysis of select public and private banks from 2010 to 2024, this study examines the relationship between NPAs and credit risk, measured using risk-weighted assets and capital adequacy ratios. The findings reveal a strong positive correlation between NPAs and credit risk, indicating that higher NPAs lead to increased credit exposure and reduced financial resilience. The study suggests policy recommendations to strengthen credit appraisal systems, improve asset quality monitoring, and enhance risk mitigation frameworks.
DOI: 10.22271/27084515.2025.v6.i1j.538
Pages: 865-871 | Views: 95 | Downloads: 44
Download Full Article: Click Here
How to cite this article:
Surbhi Vyas, Seema Parveen Khan. Impact of non-performing assets on credit risk in Indian Banking Sector. Asian J Manage Commerce 2025;6(1):865-871. DOI: 10.22271/27084515.2025.v6.i1j.538
Other Journals