Non Performing Assets: A Study on Public Sector Banks in India

Abstract

Banks play an important role in the economic development of a country. As Banks are growing, the banking sectors will be exposed to different risks namely credit risk, liquidity risk, interest risk, market risk, operational risk and management risk. The very important risk which the bank faces is recovering the loan. The financial status of the bank will be depending upon the status of the loan recovery and the level of NPA. Reduction in the level of NPA shows that the particular banks have strengthen their processes of credit appraisal system since past few years and increase in Non Performing assets will let down the banks overall profitability. Keeping this view in
mind the research tries to explore whether there is any difference in the NPAoccurrence between the selected banks from 2014 to 2018 and also the research tries to draw a view on the status of the NPAin selected public sector banks.