MEASUREMENT OF CORRELATIONS (NPA AND ROA) OF DIFFERENT BANKS AND TREND ANALYSIS OF NPAS IN INDIAN BANKS

A Non-performing asset is a loan or advance for which the principal or interest payment remained long overdue over a period of 90 days. NPAs are point of no return as they do not generate any income, whereas, the banks are required to make provisions such as assets. The aim of this project is to analyze the non-performing assets, net NPAs and gross NPAs of 8 banks in India and to see the relation between net profit, net NPAs and gross NPAs. The annual reports for the period of 3 years from 2014-2015 to 2016- 2017 of these banks have been used in this project. Correlation is used for the relation between net profit and net NPA. The result is that it is positive for private sector bank that is HDFC and negative for public sector banks and they are SBI, PNB, Union Bank, United Bank, UCO Bank, Bank of India and Bank of Baroda.