TITLE:
Methodology to Predict NPA in Indian Banking System
AUTHORS:
Gourav Vallabh, Digvijay Singh, Ruchir Prasoon, Abhimanyu Singh
KEYWORDS:
Non-Performing Assets, Multiple Linear Regression, Holt-Winter, Asset Restructuring Companies
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.4,
August
31,
2016
ABSTRACT: Banking
sector is the backbone of any economy and plays a pivotal role in the
development of the nation. With the ever increasing need of involvement of
banks in the economic growth process, the issue
of non-Performing Assets (NPAs) has assumed mammoth proportions. Subsequently,
as government in emerging countries pushes for financial inclusion, the
risk associated with bank assets increases. With this background, this paper
analyses problem of non-Performing Assets (NPAs) in Indian banking system. The authors have devised a unique way to forecast
the NPAs in Indian banking system in 2020. The focus was to devise a
model which would play a pivotal role in forecasting
future NPAs in the Indian banking sector. This was achieved by looking into
various methodologies and zeroing in
on a model, which could be implemented to help understand how NPAs could
be predicted.