IMPACT OF NPA ON THE NET PROFITS OF INDIAN COMMERCIAL BANKS

S.K. SUKHUNA, V. PARAMESWARI

Abstract


Nonperforming assets are the major issues for the banks today which are increasing and it affects the profitability of the commercial banks. Nonperforming assets have a high cost for the banks as these assets do not earn any profit. The problem of NPA’s is not only affecting the banks but the entire economy of a country. The present study is concerned with analysing the NPA’s of three bank groups namely SBI group, Nationalised bank group and Private sector bank group and the impact on the profitability. The secondary data is used and the study period is for five years.  The study finds the impact of the Net NPA on the Net profit of the bank groups during the study period. Hypothesis is framed and correlation is used to test it, results and findings, and suggestions are arrived at successfully.

Keywords


Non Performing Assets (NPA), Net NPA, Net Profit, Bank Group.

References


Bibliography

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