Indian Banking Industry is facing fraud related issues for the past few years. Indian Banks, especially Public Sector banks are suffering from mounting losses and rise in NPAs on account of increased level of number of frauds. Loan sanctioning for new projects, as happened in recent case of Nirav Modi, have brought sufferings for the industry. Many of the top executives have been charged for alleged corruption and deceitful intentions in granting loans. This creates a question mark on corporate governance and ethics in the industry. In fact, the menace of rising NPA is a global crisis that is responsible for slowdown in industry. The strength of financial system of any economy can be judged by its level of production and consumption. The living standard and status of people can be judged with soundness of financial system; but if financial system is packed with frauds and high degree of NPAs, it should be a cause of worry for any nation. Loan loss- The risk of increasing NPA and Bad debts in India is increased manifold, due to lack of appropriate methods of monitoring of loans and not by proper due diligence.

a. State what approach can help achieve controlling bad debts and NPAs due to loan loss? How can each BI and BA help solve this problem?

b. How can predictive analytics be enabled in this case? Illustrate the solution detail.

Answer rating: 100% (QA)

a A nonperforming loan NPL is a sum of borrowed money upon which the debtor has not made the scheduled payments four a specified period Although the exact elements of nonperformance status vary depend... View the full answer