Non Performing Assets
International Journal of Economic Practices and Theories, Vol. 1, No. 2, 2011 (October), e-ISSN 2247 – 7225
www.ijept.org
A Comparative Study of Non Performing Assets in Indian Banking Industry by Pacha Malyadri, S. Sirisha
Principal, Government Degree College, Osmania University, Andhra Pradesh, India
Institute of Technology and Management, Warangal, Andhra Pradesh, India drpm16@yahoo.co.in, sirisha@itm.edu
Abstract. The Indian banking system has undergone significant transformation following financial sector reforms. It is adopting international best practices with a vision to strengthen the banking sector. Several prudential and provisioning norms have been introduced, and these are pressurizing banks to improve efficiency and trim down NPAs to improve the financial health in the banking system. In the background of these developments, this study strives to examine the state of affair of the Non performing Assets (NPAs) of the public sector banks and private sector banks in India with special reference to weaker sections. The study is based on the secondary data retrieved from Report on Trend and Progress of
Banking in India. The scope of the study is limited to the analysis of NPAs of the public sector banks and private sector banks NPAs pertaining to only weaker sections for the period seven (7) years i.e. from 2004-2010. It examines trend of
NPAs in weaker sections in both public sector and private sector banks .The data has been analyzed by statistical tools such as percentages and Compound Annual Growth Rate (CAGR). The study observed that the public sector banks have achieved a greater penetration compared to the private sector banks vis-à-vis the weaker sections.
Key words: old private sector banks, new private sector banks, credit risk.
JEL classification: E50
In present times, banking in India is fairly mature in terms of supply, product range and reach. But reach in rural India still remains a challenge for the public
www.ijept.org
A Comparative Study of Non Performing Assets in Indian Banking Industry by Pacha Malyadri, S. Sirisha
Principal, Government Degree College, Osmania University, Andhra Pradesh, India
Institute of Technology and Management, Warangal, Andhra Pradesh, India drpm16@yahoo.co.in, sirisha@itm.edu
Abstract. The Indian banking system has undergone significant transformation following financial sector reforms. It is adopting international best practices with a vision to strengthen the banking sector. Several prudential and provisioning norms have been introduced, and these are pressurizing banks to improve efficiency and trim down NPAs to improve the financial health in the banking system. In the background of these developments, this study strives to examine the state of affair of the Non performing Assets (NPAs) of the public sector banks and private sector banks in India with special reference to weaker sections. The study is based on the secondary data retrieved from Report on Trend and Progress of
Banking in India. The scope of the study is limited to the analysis of NPAs of the public sector banks and private sector banks NPAs pertaining to only weaker sections for the period seven (7) years i.e. from 2004-2010. It examines trend of
NPAs in weaker sections in both public sector and private sector banks .The data has been analyzed by statistical tools such as percentages and Compound Annual Growth Rate (CAGR). The study observed that the public sector banks have achieved a greater penetration compared to the private sector banks vis-à-vis the weaker sections.
Key words: old private sector banks, new private sector banks, credit risk.
JEL classification: E50
In present times, banking in India is fairly mature in terms of supply, product range and reach. But reach in rural India still remains a challenge for the public
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