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Effect of Vital Financial Heads on NPAs of Public and Private Sector Banks

Journal of IMS Group

Volume 15 Issue 2

Published: 2018
Author(s) Name: Rashmi Kumari and V.C. Sharma | Author(s) Affiliation: Research Scholar, Dept. of Commerce, HNB Garhwal Univ. (A Central Univ.), Srinagar, Uttarakhand
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Abstract

The development of the banking industry is the barometer of economic growth of any economy. The basic function of banks is to lend money in the form of loans to different sectors like agriculture, housing, personal and others to meet the productive use of these funds. This paper aims to assess the effect of each vital financial heads on NPA of public and private sector banks. The present study is empirical in nature based on the annual reports and websites of selected banks for the period 2012-2016. Two public and two private sector banks have been selected for the purpose on the basis of their largest market capitalization. Multiple regression analysis has been used for the purpose of analysis. The findings reveal that the study found insignificant impact of vital financial heads on NPA of public and private sector banks from 2012-2016.

Keywords: Non-Performing Assets; Total Assets; Total Deposits; Total Advances; Net Interest Income.

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