CHAPTER 1:
INTRODUCTION

1.1 Background to Non-Performing Assets:
In the wake of the money related changes embraced by the Government of India in view of the Narasimhan Committee report I and II, prudential standards were presented by Reserve Bank of India to address the credit observing procedure being received and sought after by the banks and monetary foundations. To fortify further the recuperation of duty by banks and budgetary organizations, Government of India declared The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
1.2 Non-Performing Assets:
An account is declared as NPA based on non-payment of the
It is the sole banker doing banking business in the interest of the Central Government, other than collecting central taxes for the Central Board of Direct Taxes. J&K Bank adopts a multi-pronged business approach. It increases giving in the home state with the point of improving edges, regardless of humble volumes. On the same note, the Bank attempts to capture niche lending opportunities in whole India. J&K Bank works on the standard of 'social strengthening of banking' as it tries to convey innovative financial solutions for families and
The decrease in level of NPAs could be attributed to overall management of NPAs and then the increase in NPAs can be attributed to general correction in the banking industry.
3.4 Net NPAs of J&K Bank

Table 3.4: Table showing Net NPAs of J&K Bank (Rupees in Crores)
YEAR 2009-10 2010-11 2011-12 2012-13 2013-14
NET NPAs 287.51 64.33 49.34 55.27 101.99
% INCREASE OR DECREASE COMPARED TO PREVIOUS YEAR -77.62%
-23.30%
12.01%
84.53%

Graph 3.4: Graph showing NET NPAs of J&K Bank

Inference:
The net NPAs of the bank has shown a steep decline in the year 2010-11 by 77.62% and kept on decreasing till the end of 2011-12. In 2012-13 Net NPAs have increased by 12%. In the year 2013-14 the net NPA’s have increased at an alarming rate of 84.53% due to some disclosures made by statutory auditors. 3.5 Recoveries made by J&K Bank

Table 3.5: Table showing recoveries made by J&K Bank (Rupees in