Open AccessNon-Performing Assets in Public and Private Sector Banks in India: A Comparative Study
Publication year - 2022
Publication title -
international journal of engineering technology and management sciences
Language(s) - English
Resource type - Journals
ISSN - 2581-4621
DOI - 10.46647/ijetms.2022.v06i02.003
Subject(s) - private sector , public sector , business , government (linguistics) , financial system , financial intermediary , non performing asset , intermediation , finance , economics , economic growth , economy , linguistics , philosophy , capital asset pricing model
In emerging economies, banks are not onlyworking as agents of financial intermediation but alsohaving additional responsibilities to achieve socialagenda of government. They are working as lubricantfor the wheels of economy by providing financial helpto the needy sectors. This financial help is providingby them via granting loans to all these sectors ofeconomy. But the problem of rising non-performingassets (NPAs) is becoming hurdle in smoothfunctioning of banks which is also impacts on thegrowth and development of economy. The entirebanking system in India is suffering from thisproblem of rising non-performing assets which is notgood for bank’s progress. Because in case, if banksare not able to recover the amount lent to theirborrowers, the level of their profits come down whichwill adversely affect the financial health of banks.This problem of increasing NPAs is not only faced byPublic Sector Banks (PSBs) but also by the PrivateSector Banks in India. This paper focuses on the levelof non-performing assets in Public and Private sectorBanks in India and also tries to give suggestions toreduce NPAs in banks.