Asset Quality
The growth in bad loans poses the greatest threat to Indian banks. The recent economic slowdown has
resulted in an increase in bad loans which are known as non-performing assets (NPAs). There are debts
that the creditors are not able to pay back. As a result, the bank suffers a huge loss. Commercial banks
lack the necessary infrastructure required to ensure that their loans and advances are, in fact, going into
productive use in the larger public interest. Banks are suffering massive losses as a result of a large
percentage of non-performing assets or unpaid debts owed to them by creditors. They are therefore unable
to achieve a capital adequacy ratio in the most of cases. Net nonperforming assets (NPAs) account for just
2.36 percent of gross loans in the financial sector. This figure doesn’t seem to be big enough, but it has
shown worst impact on Indian banking sector and this doesn’t even come under restructured assets. When
a burrower is not able to pay back then bank makes loan more flexible and allows them to pay loan over
longer period of time. Restructured assets puts pressure on banks profitability.
Capital Adequacy
Setting capital aside as a 'provision' is one way a bank seeks to shield itself from bad loans. This money
isn't allowed to be used for anything else, like lending. As a result, banks' liquidity available for different
activities is limited. The Capital Adequacy Ratio is a calculation of a bank's capital. When this value
drop, the bank has to borrow money or use depositors' money to lend. This money, on the other hand, is
riskier and more expensive than the bank's own cash. A depositor, for example, can withdraw his or her
money at any time. As a result, a drop in CAR (also known as CRAR or Capital to Risk Assets Ratio) is
issue of concern. CRAR has been steadily declining for Indian banks in recent years, especially for
public-sector banks. Furthermore, banks, especially public-sector banks with a higher number of bad
loans, find it difficult to collect funds. If banks will fail to meet the RBI's minimum capital
requirement, they do not shore up their capital soon. They could face serious challenges in such cases.
Unhedged forex exposure
The wild gyrations in the forex market have the potential to impose considerable stress on the books of
Indian companies that have heavily borrowed from abroad. This burden will have an effect on their
ability to repay loans owing to Indian banks. As a result, the RBI expects banks to make sure that the
firms to which they lend, don't take on too much debt in dollars.
Rural Market
Banking in India is fairly mature in terms of supply, product range and reach, even though reach in rural
India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and
capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. India's rural population accounts for about
69 percent of the country's population. The government has recently set some optimistic goals, such as
offering bank accounts to all of the country's households. Even if everybody has a bank account, many
villages lack the required branches and ATMs to keep the rural economy stable. Currently, the banking
industry lacks the resources required to reach out to the bottom of the pyramid market (BOP). Most
economists believe that because of the huge population, technology would still be insufficient. However,
a more effective oversight and control system is needed.
Solutions to Banking Problems
Non-performing loans have overburdened the financial system. Public sector banks are the root of much
of the crisis but private sector banks such as ICICI and Axis Bank are not exempted.
1. Banks will be cleaned up by reviving projects that can be resurrected after debt reduction.
2. Enhance management and governance at public sector banks.
3. De-risk banking by encouraging risk transfers to non-banks and the market.
4. Government mandates for public sector banks can be reduced in number and weight.
In the current era every company is using many doors of advertising and branding like billboards, TV,
newspaper etc. Our focus is on how impactful billboards are. Here are some scholarly papers which
presents the current knowledge, theoretical and methodological in this particular topic,
Lot of research is going on how different marketing campaign affects consumer awareness about the
brands.
So Research on the effectiveness of outdoor media marketing in terms of advertising message and
Awareness has already been done (Bhargava & Donthu, 1999); (Meurs & Aristoff, 2009)
again Research on how huge poster of billboards in the public remain the top medium of promoting a
brand (Thomas, Alexa; 2015) and Research on how billboards are used to influence a group or
individuals to take some actions in the interest of a company
