Open AccessA STUDY OF NON-PERFORMING ASSETS AND PROFITABILITY IN INDIAN BANKING SECTOR
Author(s) -
Priyadeep Kaur,
Monica Bedi
Publication year - 2022
Publication title -
ymer
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.103
H-Index - 5
ISSN - 0044-0477
DOI - 10.37896/ymer21.03/43
Subject(s) - profitability index , non performing asset , public sector , private sector , business , financial system , return on assets , net interest income , payment , finance , economics , interest rate , economy , economic growth , capital asset pricing model
Banking sector is one of the most important sectors of Indian Economy. Banking sector can be grouped into Public banks, private sector banks and foreign sector banks. Nowadays all the banks are facing the problem of Non-performing assets either it be the case of public banks or private sector banks. Non-performing assets are those assets where the lender of the money loses the money due to non-payment of principal amount or Interest amount by the borrower. This research paper analyses the problem of NPAs of selected Public and Private sector banks by evaluating the impact of profitability on Non-performing assets. Using secondary data, the study also compares the Gross NPAs of Public banks in priority and nonpriority sector for a period of five years from 2013-2017.The results of the study concluded that Gross NPAs negatively affects the profitability.