A Study on Analysis of Non -Performing Assets and its Impact on Profitability

A Study on Analysis of Non -Performing Assets and its Impact on Profitability
Author(s):
Mohammad Faiz Ikram, Dr. B. Ashok
Keywords:

Abstract
In every economy, the banking industry plays an important role of intermediary for both asset and credit creation. Any Bank failure has potential for congagious effects on the economy. Hence, Bank’s asset quality must be periodically measured and monitored for general economic health of the country. The purpose of this research is to determine the extent of non-performing assets (NPA) for five years from April 2014 to March 2018. During the study's time period, both public and private sector banks' Gross and Net NPAs gradually increased. The study discovered a significant positive association between public and private sector banks' gross and net nonperforming assets. The study also discovered a substantial negative association between NPA and public and private sector bank Return on Assets (ROA). The impact of ownership (public and private sector banks) on Gross and Net NPA is substantial. Gross nonperforming assets (NPAs) have a considerable negative impact on ROA, whereas net nonperforming assets (NPAs) have a favorable impact on ROA for both public and private sector banks.
Article Details
Unique Paper ID: 158152 Publication Volume & Issue: Volume 9, Issue 9 Page(s): 637 - 642
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