If the borrower is unable to pay the loan amount provided by the financial institution within the specified time period, it is considered as non-performing loan. Such loans are both a challenge and a risk for financial institutions. The only option is to reduce such debt, not to manage it. If possible, it should be removed and if not, it should be reduced.

Non-performing loans also have a negative impact on the organizational health of financial institutions. This has a direct impact on the reputation of the organization as well as the profitability. There are many examples of financial institutions ceasing to exist due to non-performing loans. It is necessary to reduce such a negative indicator that can end the life of the organization and keep it below a certain limit. 

Talking about non-performing loans, we have a history of around 60 percent of non-performing loans in government-owned banks after the 50s. Even today, they are establishing themselves as an excellent bank within the financial system and establishing their role in the competitive market because they were able to solve the serious problems in the bank at the right time. 

How much and how much the effect of non-performing loans has been seen in different periods. A number of institutions have gone into mergers and acquisitions, one of the major reasons for which seems to be the increasing ratio of non-performing loans. If we look at the data of the last 11 years regarding non-performing loans, it can be seen that it has increased rapidly since 2079. 

In 2071, the non-performing loan was 3.7 percent. By 2078, it had dropped to 1.4 percent. By reducing this rate below 1 percent, it reached 4.92 percent by the month of January 2081. Which is highest since last 11 years.

On the one hand, non-performing loans are increasing in financial institutions, and on the other hand, the growth of loans has also been around 5 percent for the past three years. This data is also not satisfactory. Managing non-performing loans may seem good temporarily, but the last option is to reduce them.  There's also a trendy way to make

loans look good all the time. There is also a way to collect interest with one's own money by giving more loans and rotating the loan in case the loan becomes inactive when the borrower is unable to pay the loan. At present, such a practice can be considered as an 'open secret' in a large project. Which is very serious and fatal. 

Financial institutions are increasing loan investment, but the rate of non-performing loans does not seem to be decreasing. Increasing credit investment may reduce the amount of loan loss provision, but the rate and percentage of non-performing loans should not increase. If quality investment is to be made, the rate of non-performing loans should be lower as the investment increases. One thing that the financial institutions ignore is that even though the investment is increasing, the non-performing loans should decrease in the same proportion and they forget the issue that should be reduced.

A financial institution is a business that holds other people's assets as collateral and operates them. Its very nature dictates that data should be accurate, correct and realistic. But irony! Financial institutions do not portray what their loan classifications actually are.

It is the duty of the financial institution to strictly follow the rules directed by the regulatory body. In terms of following the financial discipline, it seems that the financial institutions are playing to see where they can find the 'loophole' and move forward with their activities. Due to such activities, regulatory agencies have to issue clear instructions, take action, and impose fines from time to time. 

is not really a matter of managing non-performing loans, it is only a matter of reducing them. If we look at the current financial market situation, the mentioned method is used in some form or another in many financial institutions. In fact, it is better not to get sick than to treat it after getting sick.