Vol. 3, Issue 1 (2018)
Non-performing asset: An empirical study on nationalized banks in India
Author(s): Kunal Samanta
Abstract: In India Non-performing assets are one of the important factors for banks. NPA gives the best health indication of the banking industry. NPAs reflect the performances of banks. NPAs are the primary indicators of credit risk. NPAs are an inevitable burden on the banking industry. However, the only problems of the Public Sector Banks these days are increasing level of the non performing assets. The non performing assets of the Public Sector Banks have been increasing regularly year by year. On the contrary, the non performing assets of private sector banks have been decreasing regularly year by year except some years. The Indian banking sector is facing a serious problem of NPA. The magnitude of NPA is comparatively higher in public sectors banks than private sector banks. To improve the efficiency and profitability of banks the NPA need to be reduced and controlled.