Comparative analysis for NPA of public and private sector banks

Liquidity and profitability cannot resist to present a danger on the overall quality of Indian banks assets and their overall endurance. The Indian financial system has been significant problems with rising Non-performing assets (NPAs). The rise in nonperforming assets (NPAs) has become one of the major concerns for India's banking industry. NPA's act as a significant element to judge the efficiency of budgetary execution of a bank. The quality and sufficiency of the financial framework essentially relies on the quality of the assets held by the banking system. A significantly high level of NPAs within the banking industry leads to a likelihood of an enormous number of credit defaults that influence the overall quality of banking assets and has an impact on the overall estimation of the value of those assets. The issue of NPAs does not influence the banks but also the whole economy. In fact, NPAs significant level in Indian banks is merely an impact of the provision of interests of the business and exchange. To enhance the productivity and profitability, the NPAs have to be managed in a planned manner so that they do not become a major issue to deal with in the long run. Different advances have to be taken by governments to lessen the NPAs. Irrespective of the stress they put on both the banking system and the overall economy it is exceptionally difficult to have zero percentage NPAs. The paper focuses on an endeavor as to how proficiently private and public area banks deal with their NPA's. Secondary data for the study was gathered for the chosen classifications of the banks from the RBI distributions for five years period i.e. from 2014 to 2019.