Contemporary Trend Analysis of Non-Performing Assets (NPAs): A Comparative Study of Public and Private Sector Banks In India
Keywords:
Credit Risk, Financial Stability, Policy Interventions, Sustainability, Non Performing Assets (NPAs)Abstract
The banking sector plays a crucial role in India's economy, and the quality of assets held by banks is a key indicator of sectoral development. This study delves into the impact of Non Performing Assets (NPAs) on various financial metrics such as bank profitability, liquidity, and solvency ratios. Particularly, it examines how high levels of NPAs can impede banks' earnings capacity, hinder their ability to extend credit, and erode investor confidence. With the persistent deterioration in asset quality, especially in Public Sector Banks (PSBs), the stability of the banking sector and the overall Indian economy faces significant challenges. This study
aims to assess the level of NPAs and their impact on bank profitability, with a specific focus on understanding the disparities between Public and Private Sector Banks. Through a comparative analysis, this research aims to identify distinct trends and patterns in NPA
management and performance, while also evaluating the effectiveness of various remedial measures employed by banks to address the NPA crisis.
References
Bijoy Rakshit, 2022 "Assessing the effects of cost, revenue and profit efficiency on bank
performance: empirical evidence from Indian banking";2022 – International Journal of
Organizational Analysis; DOI:-10.1108/IJOA-06-2021-2802.
Bijoy Rakshit (2022) - "Assessing the effects of cost, revenue and profit efficiency on bank
performance: empirical evidence from Indian banking" - International Journal of
Organizational Analysis.
Sram Prakash Pandey, Mano Shrijit Tripathi (2023) - "Performance Analysis of Pradhan
Mantri Mudra Yojana (PMMY) and its Impact on NPA of the Banking Sector in India" - International Journal for Multidisciplinary Research.
Rakesh Kumar Verma, R. Bansal, Nikola Stakić, D. Singh (2022) - "The Impact of the
Russia-Ukraine Conflict on Stock Market Performance: Event Study Analysis" -
Proceedings of the 9th International Scientific Conference - FINIZ 2022.
Nikhat Khan, Dr. Fozia Z. Khan (2013) - "Data Mining for Fuzzy Decision Systems in
Banking" - Data Mining and Knowledge Engineering.
K. Kobra, Md. Atiqur Rahman, Syeda Maria Rahman, Nafees Imran, Md Faisal Kabir
(2023) - "An Application of Fuzzy Logic to Bank Ranking: A study of the Banking
Sector in Bangladesh" - International Journal of Recent Technology and Engineering.
Narayan Journal of Management & Commerce Vol 1 No 1 (2024) 26-37
Abdo, H., & Hassan, M. K. (2022) - "The impact of bank-specific and macroeconomic
determinants on profitability: Evidence from the Indian banking sector" - International
Journal of Finance & Economics.
Abdo, H., & Hassan, M. K. (2022)- "Non-performing assets and their impact on the
financial performance of Indian banks: An empirical investigation" - Journal of Public
Affairs.
Arora, R., & Sharma, A. (2022) - "Efficiency of Indian public sector banks: A stochastic
frontier analysis" - Managerial Finance.
Chandra, A., & Sinha, S. (2023) - "Assessing the impact of regulatory changes on the
performance of Indian banks: A dynamic panel data approach" - Journal of Economic
Studies.
Gupta, A., & Kumar, N. (2023) - "Financial inclusion and bank performance: Evidence
from Indian rural banks" - Journal of Rural Studies.
Jain, N., & Mishra, S. (2022) - "Impact of technological innovation on the performance of
Indian banks: A study of mobile banking adoption" - Journal of Retailing and Consumer
Services.
Mishra, S., & Dash, S. R. (2023) - "Corporate governance and bank performance:
Evidence from Indian private sector banks" - International Journal of Corporate
Governance.
Puri, N., & Sharma, S. (2022) - "Asset quality and bank performance: Evidence from
Indian scheduled commercial banks" - Journal of Applied Accounting Research.
Singh, A., & Kumar, A. (2023) - "Market structure and bank performance: Evidence from
the Indian banking industry" - Journal of Indian Business Research.
Verma, R. K., Sharma, D., & Stakić, N. (2023) - "Determinants of bank profitability:
Empirical evidence from Indian commercial banks" - Journal of Asia Business
Studies.
