KARTIK MONTH IN VRINDAVAN DHAAM – SPIRITUALITY AND CULTURAL CELEBRATIONS
December 31, 2023STRESS COPING OF ADOLESCENTS IN KANYAKUMARI DISTRICT
December 31, 2023NON-PERFORMING ASSETS AND EXPECTED INVESTMENT FOR CAPACITY ADDITION IN ENERGY SECTOR OF INDIA – TREND ANALYSIS
*Gaurav Kumar, **Asif Akhtar, & ***Gireesh Chandra Tripathi
*Faculty of Management Studies & Research, Department of Business Administration, Aligarh Muslim University (AMU), Aligarh, Uttar Pradesh. India.
**Assistant Professor, Department of Business Administration & Faculty of Management Studies & Research, Aligarh Muslim University (AMU), Aligarh, Uttar Pradesh. India.
***Director General (Academics), NTPC School of Business, Noida, Uttar Pradesh. India.
Abstract
The paper analyses trends in gross and net non-performing assets of Indian banks with a focus on energy sector in India. It also conducts an overview of growing trends in energy consumption, demand, supply and capacity addition since the 8th plan (1992-97) period. We examine the expected energy demand and capacity addition requirements up till 2027, that leads to expected investment requirements for the energy sector which is mainly financed through the financial sector including banks in India. This is a definition paper which is exploratory interpretative in nature where conclusion is stated based on review of supporting data, reports and literature reviews and lists some factors that cause NPA’s in Indian banks. It concludes that the level of NPA’s of energy sector is alarming and the expected investment requirements in this sector are very high. In light of the changing financial system in India, the fact that effective remedial measures and safeguards to reduce and contain stress and NPA’s of energy sector can be formulated only after understanding the significant factors causing them. There is an urgent need to strengthen the financial sector, by research, to bridge this knowledge gap.
Keywords
infrastructure, energy sector, non-performing assets and project finance.
References
Anjom, W., & Karim, A., M. (2016). Relation between nonperforming loans and macroeconomic factors with bank specific factors: A case study on loan portfolios-SAARC countries respective. ELK Asia Pacific Journal of Finance and Risk Management, 7(2), 23-52. DOI: 10.16962/EAPJFRM.
Bebczuk, R., & Sangiácomo, M. (2008). The Determinants of Non performing Loan Portfolio in the Argentine Banking System. Ensayos Económicos Review, Central Bank of Argentina, Economic Research Department, 1(51), 83-121, Available at: RePEc:bcr:ensayo:v:1:y:2008:i:51
Gautami, S., Tirumalaiah, K. and Kumar, V.S., (2015). Factors Influencing Non Performing Assets in Commercial Banks: An Empirical Study, International Journal of Recent Research in Commerce Economics and Management, 2(2), 16-20, Available at: https://www.researchgate.net/publication/326058625.
Gopal, S. (2010). NPA’s – Comparative Analysis on Banks & Financial Institutions and its Implications. 2010. D.D.Y. Patil University, Department of Business Management, Navi Mumbai
Haniifah, N. (2015). Economic Determinants of Non-performing Loans (NPLs) in Ugandan Commercial Banks, Taylor’s Business Review, 5(2), 137-153. Available at: http://university2.taylors.edu.my/tbr/uploaded/2015_vol5_issue2_p3.pdf
Islam, M. Z., Aktar, S., Hossen, M. A., and Islam, M., S. (2018). Non- performing loan and asset utilization of Banks: evidence from Bangladesh, Romanian Economic Business Review, 13(4), winter 31+.GALE|A588342016 link.gale.com/apps/doc/A588342016/AONE
Kwambai, K., D., and Wandera., M. (2013). Effects of Credit information sharing on non-performing loans. European Scientific Journal, 9(13), 168-193.
Lokare, S.M., (2014). Re-Emerging Stress in the Asset Quality of Indian Banks: Macro- Financial Linkages, Reserve Bank of India Working Paper Series, RBI WPS (DEPR): Series no. 03, pp 1-43, February 2014. Available at: https://www.rbi.org.in/Scripts/PublicationsView.aspx?Id=15720
Meenakshi Rajeev., and H. P Mahesh. (2010). ”Banking sector reforms and NPA: a study of Indian commercial banks”, Working Paper 525, The Institute for Social and Economic Change, Bangalore,
Mittal,R. K. and Suneja, D., (2017). The problem of rising Non-Performing Assets in Banking sector in India, International Journal of Management, IT & Engineering, 7(7), 384-398. Available at: https://www.researchgate.net/publication/320487008.
Nathan, S., Ibrahim, M. and Tom, M., (2020). Determinants of Non-Performing Loans in Uganda’s Commercial Banking Sector, African Journal of Economic Review, 8(I), 26-47. Available at: https://www.ajol.info/index.php/ajer/article/view/192192
National Electricity Plan, Generation (2022). Vol – I, Central Electricity Authority, Ministry of Power, Government of India, July 2022.
National Electricity Plan, (2018). Vol. I&II, Generation Central Electricity Authority, Ministry of Power, Government of India, January 2018.
Nayak, P.B, Goldar, B. and Agrawal, P (2010). India’s Economy and Growth – Essays in Honor of V.K.R. Rao, Institute of Economic Growth, Sage Publications.
Olarewaju, O. M., (2020). Investigating the factors affecting nonperforming loans in commercial banks: The case of African lower middle – income countries, African Development Review, December 2020, 1-14. https://doi.org/10.1111/1467-8 268.12475, Available at: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8268
Ombaba, M. K. B., (2013). Assessing the factors contributing to non–performance loans in Kenyan banks, European Journal of Business and Management, 5(32), 155–162.
Rahman, B. and Jahan, N., (2018). Non-Performing Loans (NPLs) in Islamic Banks of Bangladesh: An Empirical Study, World Review of Business Research, 8(3), 12-23. Available at: https://www.researchgate.net/publication/334806430
Rajendran. P., and Karthikeyan., K. (2007). Strategies of NPA Management, Indian Economic Panorama, 17(3A), 2-7.
RBI Circular – Master Circular – Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances – Circular No. RBI/2015-16/101 DBR.No.BP.BC .2/21.04.048/2015-16 dated July 1, 2015. At URL: www.rbi.gov.in.
RBI Circular – Prudential Framework for Resolution of Stressed Assets – Circular No. RBI/2018-19/ 203 DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019. Available on URL: www.rbi.gov.in.
RBI Sectorial Deployment of Bank Credit in India dated Feb 13, 2019. Available on URL: www.rbi.gov.in.
Singh, C. and Brar, J.S., (2016). Stressed Assets and Banking in India, IIM B Management Review – working paper no. 507, April 2016, http://dx.doi.org/10.2139/ssrn.2760198
Siraj, K., K. (2014). A Study on Non Performing Assets of Public Sector Banks in India with Special Reference to State Bank of Travancore. 2014. School of Management Studies, Cochin University of Science and Technology, Kochi.
Srivastava, V. (2009). Project appraisal and measurement of risk in Infrastructure financing by Indian banks. 2009. Department of Business Administration, FMSR, AMU.
The National Bank for Financing Infrastructure and Development Act 2021, by the Act of Parliament of India, vide Gazette of India. Registered as – CG-DL-E-28032021-226210 Number 17 of 2021 on 28 March 2021. Available at: https://egazette.n ic.in/WriteReadData/2021/226210.pdf
Warue, B. N., (2013). The effects of bank specific and macroeconomic factors on non performing loans in commercial banks in Kenya: A comparative panel data analysis, Advances in Management & Applied Economics, 3(2), 135-164. Scienpress Ltd.
Waweru, N., M., and Kalani, V., M. (2009). Commercial Banking Crises in Kenya: Causes and Remedies (July 16, 2009). African Journal of Accounting, Economics, Finance and Banking Research, 4(4), 12-33. Available at SSRN: https://ssrn.com/abstract=1534205.
Yadav, R., J. (2017). Stressed Assets in Indian Banking: Causes and Measures, International Journal of Latest Technology in Engineering, Management and Applied Science, 6(7) 34-39. DOI: http://dx.doi.org/10.33516/maj.v51i1.34-39p.
Yang, C., C. (2017). Reduction of non-performing loans in the banking industry: An application of data envelopment Analysis, Journal of Business Economics and Management, 18(5), 833–851, doi:10.3846/16111699.2017.1358209, ISSN 1611-1699/eISSN 2029-4433.
Zheng, C., Bhowmik, P. K., and Sarker, N. (2019). Industry-Specific and Macroeconomic Determinants of Non-Performing Loans: A Comparative Analysis of ARDL and VECM, Sustainability 2020, 12, 325, 1-12, doi:10.3390/su12010325.
To cite this article
Gaurav Kumar, Asif Akhtar, & Gireesh Chandra Tripathi. (2023). Non-performing assets and expected investment for capacity addition in energy sector of India – Trend analysis. John Foundation Journal of EduSpark, 5(4), 11-31.