Você está na página 1de 9

9

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

reduced interest income(3) They require higher providing requirements affecting

profits and accretion to Capital funds recycling of funds, set in assetliabilitymismat ches, etc

Você também pode gostar