An Evaluative Analysis of Non-Performing Assets in the Indian Banking Sector
Keywords:
Public banks, non-performing assets, Private banksAbstract
Purpose: The health of a country's banking industry is reflected in the amount of non-performing assets (NPAs). This research analyses the contribution of various banks to NPAs from 2019 to 2023 and evaluates the impact of categories of nationalized banks and private sector banks.
Approach/Methodology/Design: The research has considered Indian banks. The study relies on secondary data obtained from the official website of the Reserve Bank of India, covering the time from 2019 to 2020. The mean has been employed as a statistical method for determining the average growth rate of gross non-performing assets (NPAs). Additionally, further improvement of the outcome is accomplished by comparing the increase in gross NPAs of individual banks with the average growth rate.
Findings: The evaluation of private sector banks indicates that the pace of increase of non-performing assets (NPAs) is relatively low compared to the banks that have been taken under state ownership. The state-owned banks were unable to properly address the problem of non-performing loans, resulting in a significant increase in such debts has been very elevated.
Originality: The study has significant value from two perspectives. Firstly, it illuminates the status of the various banks concerning non-performing assets. Furthermore, the provided information has value for investors, since substandard loans remain pertinent to their interests. The reason for this is because it significantly affects the profitability of banks and, therefore, their prospects.
References
Banerjee, R., Verma, D. and Jaiswal, B. (2018), “Non-performing assets: a comparative study of the Indian commercial banks”, International Journal of Social Relevance and Concern, Vol. 6 No. 2, pp. 5-21.
Barge, A. (2012), “NPA management in banks: an Indian perspective”, IBMRD’s Journal of
Management and Research, Vol. 1, pp. 89-91.
Bhaskaran, R., Bhalla, L., Sarin, V., Kaur, S., Rahman, A., Singh, G., Bhattacharya, A.M., Jha, A.K. and Verma, P. (2016), “Non-performing assets of public and private sector banks in India – a comparative study”, International Journal of Services and Operations Management, Vol. 25 No. 2, pp. 155-172.
Dey, S. (2021), “Recovery mechanisms of non-performing assets in Indian commercial banks: an empirical study”, NSOU Open Journal, Vol. 1 No. 2.
Gupta, B. (2012), “A comparative study of non-performing assets of SBI & associates and other public sector banks”, SIT Journal of Management, Vol. 2 No. 3, pp. 175-189.
Karunakar, M., Vasuki, K. and Saravanan, S. (2008), “Are non-performing assets gloomy or greedy from an Indian perspective?”, Research Journal of Social Science, Vol. 3, pp. 4-12.
Kumar, S. (2020), “A study on Non-Performing assets of Indian banks: Trend and recovery”, International Journal of Electronics, Electrical and Computational System, Vol. 7 No. 3, pp. 457-462.
Sharma, R.B., Subba Rao, B.V.S.S. and Kusuma, G.D.V. (2020), “Genesis for an increase of NPAs in Indian banks – an empirical analysis”, Journal of Banking and Finance Management, Vol. 1 No. 1, pp. 1-8.
Mukhopadhyay, A. (2018), “Finding innovative solutions to India’s NPA woes”, available at www. orfonline.org/research/finding-innovative-solutions-to-indias-npa-woes/
Rajeev, M. and Mahesh, H.P. (2010), “Banking sector reforms and NPA: a study of Indian commercial banks”, Working Paper 252, Institute for Social and Economic Change, 1-19.
Sengupta, (2017), “Non-performing assets (NPAs) in Indian commercial banks”,
International Journal of Engineering Science and Computing, Vol. 7 No. 4, pp. 6243-6247.
Downloads
Published
Issue
Section
License
The entire contents of the Indian Journal of Accounting are protected under Indian and international copyrights. The Journal, however, grants to all users a free, irrevocable, worldwide, perpetual right of access to, and a license to copy, use, distribute, perform and display the work publicly and to make and distribute derivative works in any digital medium for any reasonable non-commercial purpose, subject to proper attribution of authorship and ownership of the rights.
