JJEM: Special Edition 1 (December 2023)
JJEM: Special Edition 1 (December 2023)
2023-12-08
NPAs and its Impact on Profit ability A Empirical Study on Selected Indian Commercial Banks
Kiran.J, Akhila K Mathew and Amtul Moina Sultana
Financial institutions will become engaged in the loan process with the intention of creating positive returns; nevertheless, they will end up with negative returns when borrowers fail to make periodic payments. This has a knock-on effect on financial institutions. This results in banks having a positive increase of NPAs and a negative growth of profit; hence, NPAs have a greater influence on bank profit, capital insufficiency, loss of shareholders' interests, and liquidity issues, which lead to the firm's collapse. In light of this, a research has been done to better understand the increase of non-performing assets (NPAs) in both public and private sector banks, as well as their effect. SBI, Punjab National Bank and Canara Bank were chosen as public sector samples. Secondary data has been gathered, and a comparison analysis has been performed.
NPAs, Profi tability, Bank Performance