A Study of Impact of the IBC on Non-Performing Assets of the State Bank of India

Author(s): Deepali Yadav and Himanshu Srivastava

Abstract:

Balance sheets of the Indian public sector banks are laden with piling NPAs. The State Bank of India (SBI) is the largest public sector bank. The bank is not only the modus operandi of ensuring smooth financial system of the country but also the promoter of the welfare schemes of the government. Unfortunately, the SBI is the leading public sector bank in case of levels of NPAs. NPAs are a major source of concern in the Indian banking system. Even after many legal and financial reforms, the problem of NPAs seems to be far away from a proper solution. The Insolvency and Bankruptcy Code (IBC) 2016 was enacted with the objective of solving the NPA problem in an effective time bound manner. The present study focused on analyzing the trend of NPAs of the SBI in the pre and post- IBC era and factors leading to the NPAs in bank. It also attempts to study the mechanism adopted by the bank to solve the NPA problem. For the purpose of achieving the objective of the study, secondary data has been used and analysis is done using graphs, tables and percentages.

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