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and reached to 80.24crore in 2002. The only problem that hampers the possible financ ial
performance of the public Sector Banks is the increasing results of thenon performing assets. The non
performing assets impacts drastically to theworking of the banks .The efficiency of a bank is not always
reflected only by the size of its Balance sheet but buy the level of return on its assets. NPAs do
not generate interest income for its Bank, but at the same time banks are required tomake provisions for
such NPAs from their current profits.NPAs have deleterious effect on the return on
assets in several ways: --(1) They erode current profits through provisioning requirements(2 ) They result in
profits and accretion to Capital funds recycling of funds, set in assetliabilitymismat ches, etc