A Comparative Study on NPAS in Public Sector and Private Sector Banks in India

Abstract

Indian Banking Sector is extremely critical for the economic development of the country. The last decade witnessed unprecedented growth and value creation in India's banking sector with little impact from the global financial crisis due to strong regulation and discipline. However, the scenario is now changing due to various reasons. Tightening of monetary policy, a burgeoning fiscal and current account deficit, the need for increased infrastructure lending, de-regulation of interest rates on savings accounts, etc. have diluted the robust performance of Banks in comparison to other sectors. A direct result of this has been an increase in non – Performing assets (NPAs) of Banks. Hence this paper makes an attempt to identify the trend in NPAs of public sector and private sector banks in India.