Trends in non-performing assets of public sector banks

The present study is carried out with the major objective of analysing the trends in NPAs of Public sector banks by using secondary data collected from website of Reserve Bank of India under the reports on Trends and Progress of Banking in India for a period of 16 years. The collected data were analysed using statistical tools such as percentages, growth rates, correlation and regression. The analysis found that PSBs had witnessed marginal fall in the share of standard assets by 0.6 per cent, substandard assets by 0.1 per cent and loss assets by 0.4 per cent. NPA of PSBs had increased by a whopping 12.11 times during 2002–17. PSBs share in total NPA of the system had increased by 6.9 per cent during the period of study. Among all the bank groups PSBs alone had recorded a rise in the GNPA ratio during the study period. In order to ascertain the extent of relationship between gross NPAs of different bank groups, Karl Pearson's co-efficient of correlation is calculated. It is found that a positive correlation exists between the Gross NPAs of PSBs and SCBs and the extent of relationships is 0.984. The regression analysis points out that NPA of SBI group and other Nationalised Banks have a significant positive impact on the level of gross NPA of all banks in India.