NPA Management in India: In Search of a New Paradigm?

The banking & financial sector in India is undergoing rapid transformation Banks & financial institutions have amassed huge NPA's (Non-Performing Assets). This paper presents a comparative analysis of NPA management practices in several Asian countries and seeks to find out whether Indian institutions should emulate these. It also looks at several innovations in NPA and credit risk management techniques at banks & financial institutions in the last decade. This paper also analyzes the efficacy of credit derivatives as a tool for credit risk management and insolvency management in banking and financial institutions. It critically analyzes the evolution, growth and usage of these instruments since their introduction in the banking sector in India.