Non-performing assets of public and private sector banks in India - a comparative study

摘要

The banking sector is the backbone of the Indian economy. In this paper, the NPAs of public and private sector banks in India has been compared over a period of ten years (2004 to 2013). It has been observed that the percentage of net NPAs to net advances in public sector banks is varied between 3.1 and 0.9. In case of private sector banks, it varied between 2.4 and 0.4. A regression analysis has also been carried out in order to determine the relationship between the net advances and net NPAs for both sectors. From this analysis, it is evident that private sector banks are performing well in reducing the level of NPAs than public sector banks. This is an alarming figure to the Indian economy; therefore, the public sector banks have to take necessary steps in recovery of loans like war footing method.