The Burdon Of Npas In Indian Banking: A Comparative Study Of Public And Private Banks

Abstract

For decades now, Non-Performing Assets, have bedeviled the banking sector in India. Economic growth, stability of finances and earnings have adverse consequences due to this. This research is conducted to compare the burden of NPAs between the Public and Private Sector banks. It also delves into the reasons for NPAs, managerial action, and the relevance of their influence on finances. It highlights the stark differences between public and private banks with respect to nonperforming asset levels, recovery process and risk control approach. This analysis relies on secondary data obtained from regulatory papers, financial verticals, and industry evaluation. Since governance is weak in public sector banks and their policy lending increases higher NPAs, this indicates that private banks manage credit risks and recovery better, the results suggest. This study should be useful for the policymakers, banking practitioners and regulators in formulating strategies for minimization of non-performing assets (NPAs) and efficiencies of Indian banking system.