Pro-cyclical Management of Banks’ Non-Performing Loans by the Indian Public Sector Banks

Following the implementation of the Basel Accord across several countries, a large literature including Borio, Furpine and Lowe (2001), Borio and Lowe (2002), White (2006) has emerged on the subject of procyclicality of bank indicators. Economists‟ concern derives from the key lesson learned from the various crises including the recent global crisis originating from an advanced economy like the