INDIA’S banking system, which was robust enough to withstand the financial crisis of 2008, is facing yet another crisis today. The banks, particularly the public sector ones, are burdened with huge amounts of non-performing assets (NPAs), which are threatening the viability of the banking sector.

In the last three years, under BJP rule at the centre, the NPAs of the banks have tripled - from Rs 2.3 lakh crores to Rs 6.8 lakh crores. Currently, the NPAs of public sector banks stand as high as 11 per cent of their total advances.