The NPA is a fraction of the problem for Indian banks. They will employ a team of lawyers and / or sell NPA to ARCs to get rid of such accounts. They will get capital from the Govt.
But for entrepreneurs having an NPA, it is the mega problem for them. Their other good accounts will get affected; no one will lend them, they will be at a risk of selling of property mortgaged to the bank. It’s a very stressful situation. Mostly most small NPAs are not willful but ignorant NPAs.
Most entrepreneurs are financially illiterate. They can do good business, but can’t read financial statements. They can’t understand the implication of debt, cash and cash flow.
First draft my next ebook Dangerous DEBT – What every entrepreneur must know himself is ready. I am looking for a few beta readers who can give me feedback about the book.
Please express your interest by dropping your email ID in response to this post to receive a soft copy of the manuscript.