The Indian banking sector has been facing serious problems of raising Non-Performing Assets (NPAs). Lower level of Non Performing assets helps the bank in consolidating their position and gives credence to efficiency of the management. This research topic is a study on the objectives of comparative analysis of nonperforming assets of selected public and private sector banks in India and its effect on profitability. The study period is considered 2005 to 2012 and secondary data has collected of sixteen public and private sector banks from Indian banking industry. ANOVA and multiple regression analysis used as a statistical tool. The hypothetical analysis shows that there is significant difference in net NPAs and gross NPAs ratio of sixteen banks. Finally the study concludes that NPAs has impact on banking profitability and it can be assumed that others factors also responsible but the impact of NPAs is high in public sector banks in comparison to private sector banks.
Profitability, Gross NPA, Net NPA, Public Sector Bank, Private Sector Bank
