[Day 18 | GS3] Target Mains: Skill Enhancement Prog. IAS Mains 2016

GS III (Economic Development) (Simplex)

Growing debts and stressed loans turning into NPAs have been frequently noticed in the last few years. It has now reached alarming levels as the government has decided to write off these NPAs as bad loans. Why PSBs’ conditions are bad compared to other banks? What are the main reasons behind the creation of bad loans?

Demand-

Growing of NPA’s of PSB’s compared to other banks shall be discussed. Also reasons and ways out shall be explained. 

Approach-

-Start with introduction NPA and why NPA’s are there in bank (3 marks)

– Reasons behind the increase in bad loans and its impact on the PSB which has led to this situation (4 marks)

– Suggest the way out and Challenges ahead (3 marks)

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