Potential Sticky Assets: Recognition Ahead of Time

Concerned book is mainly related to the identification of non-performing assets of banks. If bank’s lending becomes a bad loan with the passage of time, banks earning is stopped and it comes forward as threat to their existence. Sometimes banks are even liquidated if number of NPA accounts are more or their amount is significant. To prevent this type of awkward situation, it becomes essential to recognize the future bad loans. Every loan which is going to be bad in future, starts giving certain symptoms. These symptoms have been discussed in the book so that bankers by early recognizing can avoid the slippage of standard loans accounts into sub-standard category. It is only the recognition ahead of time which can play a vital. In addition to this, book will also throw light on certain crucial areas such as pre-sanction inspection and post-sanction inspection by the bankers. It will make the bankers more prudent to decide between genuine and in genuine borrowers and will help to avoid NPAs for future loans.