Comparing Asset Quality: An Examination of Performing and Non-Performing Assets in Bilaspur District Banks

Abstract

The research is done on IDBI & Bank of Baroda. The banking industry faces a serious threat from non-performing assets (NPAs), which can affect profitability, liquidity, and solvency. The increase of NPAs is influenced by economic downturns, bad credit management techniques, and insufficient risk management systems. In order to reduce the risks connected with NPAs, effective credit and risk management practices are essential. Performing assets (PAs) are essential for preserving the banks financial stability. They are a sizable source of income and support the banking industry profitability, liquidity, and solvency. The development of PAs depends on efficient credit management  systems, and loan portfolio diversification. To increase their performing assets and reduce the risks related to non-performing assets (NPAs), banks must implement novel solutions.The banking industry is crucial to the growth of an economy. This role of the bank controls how quickly the economy develops. Therefore, the stability of the banking industry is crucial for the growth of an economy. Any banks primary duty is to give money to people through loans. The non-performing assets (NPAs) issue is one of the biggest and most serious issues that has rocked the financial world. erforming assets (PAs) are essential for preserving the banks' financial stability. They are a sizable source of income and support the banking industry's profitability, liquidity, and solvency. The development of PAs depends on efficient credit management procedures, risk management systems, and loan portfolio diversification. To increase their performing assets and reduce the risks related to non-performing assets (NPAs), banks must implement novel solutions.