Main Article Content


One of the major concerns in India for the banking sector is non-performing assets (NPAS). Performance of the banks is generally reflected on the basis of NPAs. Higher the level of NPAs, higher is the probability of a large number of credit defaults, which in turn affects the profitability and net-worth of banks; also it corrodes the value of the asset. The liquidity and profitability is also affected by NPAs in addition to posturing threat on value of asset and existence of banks. The Indian banking sector has been fronting severe glitches of hovering non-performing assets NPAs the NPAs growth has a direct influence on profitability of banks. It encompasses the inevitability of provisions which shrinks the overall profits and shareholders value. The problem of NPAs is not only affecting the banks but the whole economy as well. In fact high level of NPAs in Indian banks is nothing but a reflection of the state of strength of the industry and the trade. It is essential to trim down NPAs to improve the economic conditions in the banking system of India. The banking sector in India is facing a stern delinquent of NPAs. The understanding of NPA and the effect of NPA on stock performance of public and private sector banks is taken into consideration of last three years i.e. 2016-2019 in this research paper. The research paper also tries to focus on the factors contributing to NPAS, causes for high NPAS, similarly their effect on Indian banking operations and the inclination and magnitude of NPAs in selected public and private sector Indian banks. 

Article Details