Author(s) :   Sushil Kumar

Abstract : Non-Performing Assets (NPAs) have emerged as a persistent challenge for the Indian banking sector, significantly impacting profitability, credit growth, and overall financial stability. This paper presents a comprehensive analysis of NPAs in selected public and private sector banks from 2014 to 2018, focusing on their trends, underlying causes, and direct impact on key profitability metrics such as Return on Assets (ROA) and Return on Equity (ROE). Drawing on secondary data from the Reserve Bank of India (RBI), academic research, and annual reports, the study reveals that public sector banks (PSBs) consistently reported higher NPA ratios and experienced greater erosion of profitability compared to private sector banks. The findings underscore a strong negative correlation between NPA levels and profitability, with sectoral vulnerabilities and governance lapses exacerbating the crisis in PSBs. The paper concludes by highlighting the need for robust risk management, regulatory reforms, and technological innovation to restore asset quality and financial resilience in Indian banking.

Keywords: NPA, ROA, ROE, Assets Quality, PSBs.

DOI : https://doi.org/10.61161/ijarcsms.v7i2.3

Pages : 80-84

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