Economic Growth Under Pressure: The Influence of Non-Performing Assets

Abstract

Problems arising from NPAs have become a serious worry for Indian banks and those who
make financial policies. As more NPAs occur, banks face problems with profit, running
efficiently and being believed in which slows the economy. This paper seeks to assess the
increase in non-performing assets and its effects on India’s economic performance. The
researchers gather secondary information from financial providers and statistical analysis
tools to see if there is a relationship between non-performing assets and the growth of GDP.
Research results prove that as banks non-performing assets rises, the sector’s willingness to
support productive investment grows less, causing the economy to develop sluggishly