Applying Blockchain Technology to Address NPA Issues During the COVID‐19 Pandemic
Jasmine Kaur, Priya Jindal, Kiran Sood · 2022
Purpose: Several high-profile bankruptcies rocked the Indian media, highlighting the long-standing burning issues within the Indian banking sector. This is often the problem with NPLs, which are called non-productive assets (NPAs). Indian public sector enterprise (PSU) banks currently have a calculable amount of INR 4 trillion (US $60 billion) of unsafe loans as of the Gregorian calendar month 2015. Loans become NPA, banks’ monetary risk Indian women would increase their market shares. Investors take the burden of this risk, and the business suffers as well as the economy. This paper provides a view on the role of Blockchain technology in scanning the Non-performing loans by identifying the operational and systematic problems and to provide resolutions to these issues. Gap Analysis: Most ASEAN countries are stricken by rising company debt and inadequate debt reimbursement capacity. Singapore, Asian country and Asian nation all practiced loan growth quicker than their GDP, with Thailand coverage NPLs on top of 3%. Non-performing loans are oil-fired by poor underwriting and a listless approach to positioning credit rating changes with loan repayment terms. Research on assessment of the problems with regard to time taken to solve these problems is still missing. Practical Implications: A holdup of Indian industrial growth and therefore the increase in interest rates, combined by economic volatility across the world, has accentuated the chance of default. Just like India, alternative growing economies like China, Thailand, Brazil, and Argentina have a major share of debt owed by companies with affected reimbursement capacity. Addressing asset management issues for this segment can significantly reduce the magnitude of risk. Findings: The slowdown in Indian business growth and rising interest rates, exacerbated by global economic volatility, has heightened the risk of bad loans. Like India, other growing economies such as China, Thailand, Brazil, and Argentina have a big share of debt with corporations with strained reimbursement capacity, companies with limited repayment capacity. This will likewise assist with introducing trust between bank coordinated efforts.