NPA do we need to worry about it?Every day either the papers or news channels report about NPA (Non performing assets) of banks. The share value of Axis Bank fell around 70 rupees each since the quarterly results were announced last week. This is quoted to be primarily because of an increase in NPA.
Many banks have huge NPAs. If we go by the figures the NPA for Indian banks in estimated to be Rs 2.2 trillion rupees(16-17) and Rs 3.3 trillion rupees (17-18).
These are basically bad corporate loans that have to be written off. Ultimately the simple analysis means that the already burdened taxpayer will be further indirectly made to bear these huge loses as I don't think anyone will be willing to take the responsibility.