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

Author

Listed:
  • R. Bhaskaran
  • Lalit Bhalla
  • Vishal Sarin
  • Sukhpreet Kaur
  • Afzalur Rahman
  • Gagandeep Singh
  • Amit M. Bhattacharya
  • Abhishek Kumar Jha
  • Pooja Verma

Abstract

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.

Suggested Citation

  • R. Bhaskaran & Lalit Bhalla & Vishal Sarin & Sukhpreet Kaur & Afzalur Rahman & Gagandeep Singh & Amit M. Bhattacharya & Abhishek Kumar Jha & Pooja Verma, 2016. "Non-performing assets of public and private sector banks in India - a comparative study," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 25(2), pages 155-172.
    • Handle: RePEc:ids:ijsoma:v:25:y:2016:i:2:p:155-172
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    Citations

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    Cited by:

    1. Bharat Kumar Meher & G. L. Puntambekar & Iqbal Thonse Hawaldar & Cristi Spulbar & Ramona Birau & Cristian Rebegea, 2020. "An Effectiveness Assessment of Preventive Management Strategies in order to Manage Non Performing Assets in Indian banks: A Case Study," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(2), pages 235-258, June.
    2. Pramahender, 2022. "Critical Perspectives to Non-performing Assets of Indian Banks, Shrinking Balance Sheet, Challenges and Way Ahead," FIIB Business Review, , vol. 11(2), pages 130-136, June.

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