A comparative study of management of non performing assets in public and private sector banks in Haryana

Banks are the important determinant of any countries economic development. During colonization banks provide credit facility to business and trading class. The main importance of banks were realized in post independence period when in 1969 nationalization of banks took place and banks registered impressive achievement in term of branch banking, deposits, credit and investment. But with the time public banks face the allegations of fulfilling the social need only because there is an increase in the non performing asset (NPA) which not only affect the profitability of the bank but sometimes even a threat for the survival of the bank. Lending is the main activity of banks but this practice involved a large amount of risk and mainly credit risk. It is important to keep an eye on every credit right from the beginning to reduce the level of NPA. A proper policy need to be framed to keep a check on the NPA level in banks. It was always considered that there is difference in management of NPA between public and private sector banks as the private sector banks have good infrastructure and various other facilities. An attempt has been made t make a comparative study between the management of NPA by public and private sector banks in Haryana.