Non-performing assets have been hurting Indian banking sector since long time. Narasimham Committee Report on banking reforms introduced the concept of non-performing assets. This was a part of the government’s effort to bring in global standards to Indian banking industry. As a part of the same effort in the year 2002 SARFAESI Act was passed enabling Indian banks to securitise the assets. This should have helped in Indian banks to reduce the non-performing assets. This study attempts to find out answer for the same. The data on non-performing assets and assets securitised by all scheduled commercial banks over the period of last ten years is analysed using ordinary least square method of regression. The results indicate that there is a no significant positive relationship between the securitisation and decrease in non-performing assets.
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