Predictive Modelling for Non-Performing Assets in Indian Banking Sector

Author:

Pathare Suresh1ORCID,Sandhu Mohneet1

Affiliation:

1. ​SVKM’S NMIMS (Deemed to be University), Navi Mumbai

Abstract

Abstract This paper provides exploration of the financial and operational factors that contribute to India's Non-Performing Assets (NPA) problem, as well as practical solutions for mitigating the risk of future NPAs. Descriptive statistics, regression analysis, and time series analysis are used to identify the main drivers of NPAs of Indian banks and discovering that high levels of NPAs have resulted in lower profitability, increased provisioning requirements, and higher borrowing costs. Findings and recommendations of this study provide valuable insights for policymakers, regulators, and banking practitioners seeking to reduce the risk of NPAs in India.

Publisher

Research Square Platform LLC

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