Business Wire India
- Co-authored by Prof Arun Kumar, Associate Professor, NU; Mr. Anoop Kumar Sharma & Mr. Ganesh Komma, former students, highlighting exemplary teamwork between faculty & students at NU
- Draws to light the little-known fact that ‘Good NPAs’ can be profitable for banks
Established with a vision to bring about innovation in higher education and learning in emerging areas of the knowledge society, the not-for-profit NIIT University (NU), launched a book, ‘Banking Industry and Non-Performing Assets (NPAs)’ at its Neemrana campus. The book is co-authored by Prof Arun Kumar, Associate Professor, NU; Mr. Anoop Kumar Sharma and Mr. Ganesh Komma, both currently working with ICICI Bank and former students of NU’s industry linked MBA program in collaboration with ICICI Bank.
Banking Industry and Non-Performing Assets highlight the problem of NPAs faced by the Indian Banking Industry. It analyses the top 10 cases of NPAs and suggests remedial measures that need to be taken to avoid them in the future. The book also highlights the little-known fact that not all NPAs are bad.
The book was unveiled by Mr. A C Rout, ED, Bank of Maharashtra; Mr. Sanjay Arya, Ex- ED, United Bank of India and Mr. Rajendra S Pawar, Chairman & Co-Founder, NIIT Group & Founder, NU. A panel discussion was also conducted on ‘NPA – the road ahead’, following the book launch. Mr. Sanjay Arya, Ex- ED, United Bank of India; Mr. Partho Chakraborty, Product Head, Dsmg – Mortgages, ICICI Bank Ltd; Prof Arun Kumar (Author); Mr. Anoop Sharma (Author) and Mr. Ganesh Komma (Author) participated in the panel discussion. Mr. DK Gupta, Ex- GM, SBI was the Moderator for the session.
The panel discussion broadly focused on present position of NPA in Indian Banking Industry, root causes of these NPA, various recovery options available, how to contain future growth in NPA and role of IT in containing future NPA.
The interesting fact that came to light was that there are Good NPAs and there are Bad NPAs. Good NPAs are those where borrower's intention was good, but account became NPA due to external factors that are beyond their control. Further, the NPAs can become goldmines as these are the assets in which banks would have generally made 100% provisions, so any recovery will add to the profit of the bank.
Congratulating the authors, Prof V S Rao, President, NU said, “I congratulate the authors on successfully putting together a book on a subject that is impacting the banking industry. The book also exemplifies team work and critical thinking that lies at the core of education delivered at NIIT University. Our focus is to impart education that will enable our students to think critically and come up with solutions.”
Prof Arun Kumar, Associate Professor, NU and Co Author, Banking Industry and Non-Performing Assets (NPAs), said, “NPA is one of the major challenges that the Indian banking system is grappling with. Besides coming in the way of future bank lending, as banks become over cautious and risk averse, NPAs have impacted the credit growth adversely. This has prompted us to come up with a book highlighting the criticality of the subject.”
“To deal with the problem of NPA I would like to propose a deposit scheme with bail-in option wherein the depositors will get risk premium. That is, one to two percent higher interest than the normal depositors and the deposit may be converted into equity in case of bail in. I would humbly request the Hon'ble FM to consider this innovative idea in the forthcoming budget,” added Prof Arun Kumar.
Conceptualized as an institution of excellence, NU provides exceptional education based on the Four Core Principles that make learning Industry-linked, Technology-based, Research-driven and Seamless. NU, is well poised for meeting the emerging needs of the knowledge economy through its focus on building strong industry linkages and a research oriented approach.