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

Non-Performing Assets (NPAs) serve as a crucial measure of the financial stability and operational efficiency of the banks. The volume of NPAs is significant because it assesses the overall soundness of the banking system. In Indian context, ownership significantly explains the extent of NPAs. Accordingly, the present study is carried out to focus on the comparative analysis of NPAs in public and private sector banks in India based on key financial ratios. For this study, a sample of six banks, comprising three public banks (BOB, PNB, and SBI) and three private banks (AXIS, HDFC, and ICICI), is selected based on their market capitalization. The study utilizes the secondary data over an 11-year span, covering the period from 2014 to 2024. The research is quantitative in nature. To examine the data, descriptive statistics is used to summarize the data; Welch test and post-hoc (Games Howell) test are used to assess the bank differences. The analysis highlights that public banks have higher fluctuation in NPA ratios than private banks. Out of public banks, PNB shows more NPAs, whereas in private banks, ICICI Bank has higher NPAs in all years