A Study of Non-Performing Assets on Selected Public and Private Sector Banks

Post reform era has changed the whole structure of banking sector of India. The emerging Competition has resulted in new challenges for the Indian banks. Hence, parameters for evaluating the performance of banks have also changed. This paper provides an empirical Approach to the analysis of profitability indicators with a focal point on non-performing assets (NPAs) of public and private sector banks. Non-performing assets are one of the major concerns for banks in India. NPAs reflect the performance of banks. The earning capacity and profitability of the banks are highly affected because of the existence of NPAs. A high level of NPAs suggests that large number of credit defaults that affect the profitability and net-worth of banks. Private and public Sector banks are highly affected by this three letter virus NPA,. This paper an effort has been made to evaluate the operational performance of the selected PSBs& Private bank in India and also analyze how efficiently Public and Private sector banks can managing NPA. The magnitude of NPA was comparatively higher in public sectors banks compared to private banks under study but now, they have managed the number at lower end. ICICI bank still do have higher NPA figure compared to PSB under study.