A Comparative Analysis of Non-Performing Assets in Public and Private Sector Banks in India

Abstract: The Indian banking sector has been grappling with the issue of Non-Performing Assets NPAs for several years. While both public and private sector banks have been affected, the magnitude and nature of the problem differ significantly between the two. This study aims to compare the NPAs of public sector banks and private sector banks in india, examining the differences in their NPA profiles, determinants, and impact on bank performance. Using a panel data set of Indian banks for the period 2018-2024, this study employs econometric techniques to identify the key factors contributing to the growth of NPAs in both public and private sector banks. The results of the study suggest that private sector banks have lower NPAs compared to public sector banks, and the study also finds that NPAs have a negative impact on banks performance , measured in terms of profitability and efficiency, and that private sector banks are more efficient in managing their NPAs