Recently, the Indian government has announced a slew of measures to deal the rising NPA of the banks, which is threatening overshadow a string of the economic reforms. Mr. P. Chidarmbarm, the Finance Minister announced various macroeconomic reforms to improve the nation’s fiscal health. Actually, the Non Performing Asset is the money, defaulted by the borrowers that ceases to generate income for the banks. On August 26th 2013, the finance ministry issued a note and it says that the NPA of the Public Sector Banks has increased up to 4.39% and the total amount is, Rs. 1,76, 000 crores. He further said that this is the budget amount that is allotted for the education, health and the rural development.
If other nataionlized banks are included in the list, the total amount is 3,50,000 crore Rupees. This amount is more than enough for the military and internal security expenses. Earlier, the finance minister asked the banks to work deep on top thirty major loan defaulters.