CAPITAL ADEQUACY AND NON-PERFORMING ASSETS - A STUDY ON SELECTED COMMERCIAL BANKS IN INDIA

Abstract

With the gradual growth of private sector banks as well as the entry of emerging foreign banks into the country-financial system; Indian banking sector has become dynamically comparative where capital regulations play a central role. Apart from this, assets quality as well as quantity management are also attributing vulnerable aspects for identifying the financial soundness of banking business. An effort to establishment the theoretical concepts of Capital Adequacy and Non-Performing Assets (NPAs) have employed through this current study. Apart from this, empirical segment of the study also aims at analyzing the degree of association between Capital Adequacy and NPAs along with the growth-trend of all these two factors over a period of four years ranging from the financial year 2015-16 to 2018-19, among some selected nationalized, private and foreign banks operating in India; which is ultimately concluded by providing prudential recommendations.