Non-Performing Assets: A Comparative Study of Private Sector Banks

The banking sector of an economy is prime importance for its financial and economic development. It forms the hub of the financial sector and plays a critical role in transmitting monetary policy drive to the entire economy. The strength of banking sector is vital for the development of an economy,But today Banking sector facing the problems of increasing Non performing assets day by day. The banks have to take initiatives to bring down the Non performing assets . If NPAs are not properly managed, it adversely effect banking business. For the stability of banking industry it is essential that the performance of individual banks are checked to judge the performance of banks. Higer Non Performance assets indicates the inefficiency of the banks and lower Non Performing assets indicates of the better performance and funds management .To increase the performance of the bank, the NPA need to reduced and controlled by the banks. This paper makes an attempt to study the trends of selected Private banks,HDFC and AXIS Banks and data taken for the period of 2012-18 to calculate Gross NPA, Net NPA, the impact of NPAs and the recent measures taken by the government to decrease the NPAs.