Volume - 13 | Issue-1
Volume - 13 | Issue-1
Volume - 13 | Issue-1
Volume - 13 | Issue-1
Volume - 13 | Issue-1
Regional Rural Banks (RRBs) were established by an Ordinance in 1975, which was later superseded by the Regional Rural Banks Act, 1976. The RRBs have made loans to a wide range of urban, semi-urban, and rural categories in priority and non-priority sectors in nearly all states and districts. The RRBs are facing problems due to failure in collecting interests and payments on the loan portfolio resulting in decreasing productivity, liquidity, solvency, efficiency, and profitability. The prevalence of non-performing assets (NPAs) in RRBs is concerning. NPAs are pretty old and contain 100% provision, resulting in numerous restrictions. The research seeks to identify the causes of the occurrence of NPAs and examines the strategies for improving asset quality for eliminating NPAs. This paper also investigates the different objectives, methods, strategies, and means the bank employs to sustain liquidity and profitability, which is critical to manage NPAs effectively.