Non-Performing Assets of Central Cooperative Banks in Haryana

Abstract

An asset becomes non-performing when it ceases to
generate income for a financial institution. A nonperforming asset does not yield any return but it incurs a
cost by eating into earnings made by banks. The origin of the
problem of increasing non-performing assets lies in the
quality of managing credit risk by the banks concerned. The
present treatise is an attempt to study the non-performing
assets position in Central Cooperative Banks (CCBs) in
Haiyana. Non-performing assets are caused as a result of
various internal and external factors. What is needed is
having adequate preventive measures in place namely,
fixing pre-sanctioning appraisal responsibility and having
an effective post-disbursement supervision. Banks
concerned should continuously monitor loans to identify
accounts that have potential to become non-performing