ADVANCED ASSET-LIABILITY MANAGEMENT PRACTICES AT HDFC LIMITED

Abstract

A thriving economy requires a solid financial sector. If the financial industry collapses, it can cause problems in other areas as well. The problem of non-performing assets is a big worry for Indian banks.
Nonperforming assets show how well banks are doing. When nonperforming assets (NPAs) are high, it's a sign that there will likely be a lot of loan defaults, which hurts banks' bottom lines and net worth and reduces the asset's value. Provisions are a direct result of nonperforming asset growth, cutting into both total earnings and shareholder value.
There has been much discussion on the topic of non-performing assets in the context of global financial systems. Banks aren't the only ones the economy is feeling the effects of the nonperforming loan crisis. Actually, the high levels of nonperforming loans in Indian banks are only a reflection of how the industry and trade are doing overall.
Gaining familiarity with non-performing accounts (NPAs), their scope, and the main factors that contribute to their demise is the focus of this endeavour.