Comparative Analysis of Non Performing Assets in Public Sector Banks

Dampened economic growth in the past years has put heavy burden on banks in terms of unrecovered loans and advances. These unrecovered loans or NPA level has been increasing at an alarming rate in case of the Public Sector banks which owe almost a quarter of advances made in the country. This study analyses the Gross and Net NPA ratio of major Public Sector Banks from 2011 to 2013. It investigates that there is significant difference in the ratio of Gross Non Performing Assets of banks over the years while this difference is considerably reduced in case of Net Non-Performing Assets by adequate provisioning of loan loss items by the banks.