Financial Performance Appraisal of Selected Private and Public Sector Banks in India with regards to Gross NPAs to Total Advances

Banking system occupies an important role in the economy of a nation. In fact, banking system of any country is the lifeblood of an economy. A banking institution is indispensable in the modern society. It plays important role in the economic development of a country and forms the core of the money market for the country. The banking sector performs three primary functions in an economy; first, the operation of the payment system, second, the mobilization of savings and finally, the allocation of savings to investment projects. The banking system which constitutes the core of the financial sector plays a critical role in transmitting monetary policy impulses to the entire economic system. An efficient banking structure can promote greater amount of investment which can further help to achieve a faster growth rate of economy. Worldwide experience confirms that countries with well-developed and market oriented free banking system grow faster and very consistently. This research paper deals with Financial Performance Appraisal of Selected Private and Public Sector Banks in India with regards to Gross NPAs to Total Advances.