A comparative study of NPA management in public and private sector banks in India

Banking services are playing a major role in corporate world for assistance in financial matters for growth and development. Now the role of banking services has increased as need of financial services has felt much. In this study of Comparison of NPA Management in Public and Private Sector Banks, the banks having highest NPA as on March 31, 2011 has been selected from both the sectors. The objective is to know the criteria for identification of NPA, to compare the performance of Public and Private Sector Banks. The total NPA in all the two sectors i.e., public, private; public sector is having highest and fast growing NPA. Analyzing the market share SBI is holding major share in PUSB and ICICI having major share in PRSB. The maximum growth in PUSB is in SBI and BOI. The maximum growth in PRSB is in Axis and HDFC Bank. On correlating Total NPA, Priority, Non-priority and SME are having positive correlation while in other sector NPA there is negative correlation. T-test shows no significant difference between total NPA, Priority, Non priority and Agriculture sectors while it shows significant difference between SME and other sector of NPA.