NPA Analysis for Private-Sector Banks Mainly HDFC Bank and Kotak Mahindra Bank

Abstract

This study attempts to analyse the current problem that Indian banking system mainly private banks are facing in the context of non-performing assets (NPAs). An attempt is made to examine both the macroeconomic and microeconomic (banking sector specific) factors responsible for the rising NPA levels in the Indian banking sector, mainly in private-sector banks. The analysis is done using the data of HDFC Bank and Kotak Mahindra Bank. The data of past 3 years for both the banks is taken for analysis purpose. The study is limited to 4 years data which is taken from two private-sector banks of India. Regression analysis is done for analysing the data. Analysis is on the basis of the data taken from authentic secondary sources.