"Non-Performing Assets in Indian Banking Sector: An Analytical and Comparative Study Between Public and Private Sector Banks"

Abstract

Nowadays, Indian banking sector faces a number of serious issues regarding the increasing level of Non-Performing Assets (NPAs). The Non-Performing Assets have a direct impact on the profitability as well as the liquidity of banks. In India the concept of NPA has emerged after reforms in the financial sector were introduced on the recommendation of the Narsimham Committee (1991). Money related framework assumes a crucial job in the improvement of an economy which is the key factor towards a nation’s improvement. It goes about as a middle person between streams of reserve for the individuals who spare as a piece of salary and those putting resources into profitable resources. Banking establishments have the significant job of tolerating long haul store and loaning cash to the borrowers. This research paper aims at identifying which sector (Public/Private) has higher rate of NPA in Indian banking sector and also the paper suggests about the remedial measures to overcome NPAs. The study is conducted purely based on secondary sources of data such as articles, newspapers, magazines, etc.