An Empirical Study on Npa Management Strategies between Public and Private Banks-with Special Reference to Banks in Bangalore City

This Study was undertaken to know the NPA Management Strategies between Public and Private Bank and also to know the recovery mechanism adopted for recovery mechanism adopted for recovery of NPA's. Nonperforming assets are one of the major concerns for banks in India. NPAs reflect the performance of banks. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. The NPA growth involves the necessity of provisions, which reduces the overall profits and shareholders' value. The issue of Non Performing Assets has been discussed at length for financial system all over the world. The problem of NPAs is not only affecting the banks but also the whole economy. In fact high level of NPAs in Indian banks is nothing but a reflection of the state of health of the industry and trade. This research deals with understanding the concept of NPAs, its magnitude and major causes for an account becoming non-performing, projection of NPAs over next years in banks and concluding remarks.