A Comparative study of Non Performing Assets in Public and Private Sector Banks in India

INAMDAR MEGHNAD PUSHKARKUMAR; Dr. KAPIL K. DAVE

Volume : V, Issue : VIII, August - 2016

A Comparative study of Non Performing Assets in Public and Private Sector Banks in India

Inamdar Meghnad Pushkarkumar, Dr. Kapil K. Dave

Abstract :

The economic reforms in India started in early nineties, but their outcome is visible now. Major changes took place in the functioning of Banks in India only after liberalization, globalisation and privatisation. It has become very mandatory to study and to make a comparative analysis of services of Public sector Banks and Private Sector banks. this paper an attempt to analyze how efficiently Public and Private sector banks have been managing NPA. Non–performing assets are one of the major concerns for banks in India. NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net–worth of banks and also erodes the value of the asset. NPAs affect the liquidity and profitability, in addition to posing threat on quality of asset and survival of banks. The Indian banking sector has been facing serious problems of raising Non– Performing Assets (NPAs). The NPAs growth has a direct impact on profitability of banks.An attempt is made in this paper that what is NPA? The factors contributing to NPAs, reasons for high NPAs and their impact on Indian banking operations, the trend and magnitude of NPAs in selected Indian public and private sector banks.