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

Abstract

The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institution. Today, all the banks are facing the problem of nonperforming assets whether it is public sector bank or private sector bank. The asset quality of banks is one of the most important indicators of their financial health. 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 NPA’s growth has a direct impact on profitability of banks. The research paper attempts to evaluate various ratios of nonperforming assets and compare the ratios of Public and Private sector banks.