Abstract
The accumulation of huge non-performing assets in the balance sheets of banks has become a serious issue from the past decades. Non-performing loans in banking sector is not just a problem but proves fatal to the economic growth of the country. NPAs reduce the profitability of banks, weaken its financial health and erode its solvency. In this study, an attempt has been made to compare the performance of public sector, private sector and foreign banks in India with special reference to NPAs. For this purpose four banks from public sector-Punjab National Bank, Andhra Bank, Bank of Baroda and United Bank of India from private sector banks-HDFC Bank, Axis Bank, Federal Bank and INDUSIND Bank from Foreign Banks-Barclays Bank, DBS bank ltd., CTBC and HSBC are selected. A comparative analysis of all three categories is made on the basis of gross and net NPAs. The study concludes that there is huge difference in NPAs of public, private and foreign banks. PSB's are highly pressurised by NPA's. NPAs are not confined to PSB's also but are present in private and foreign banks as well. So, they are more competent in making plans for recovering funds from borrowers (both individuals and institutional). The public sector banks are required to lend money to weaker sections of the society also, where the chances of recovery is almost negligible. Concerned over high level of bad loans in the banking system there is need to devise a mechanism to detect stressed assets early so that corrective steps can be taken.
Published Version
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