The Non-Performing Assets (NPA) crisis has continued to grow throughout, both in terms of absolute amount and as percentage of advances. In the year 2016 it increased by 56% and reached Rs. 6.14 lakh crore.
Parliament enacted Insolvency and Bankruptcy Code, 2016 to ensure time time-bound settlement of insolvency and lowering NPAs. The BJP government has notified the ordinance to the Banking Regulations Act, enabling RBI and banks to initiate bankruptcy proceedings against chronic defaulters.