Comparative analysis of the non performing assets of banks in India-structural equation model

Loans granted by banks have to be repaid. The due amount which remains unpaid is overdues. As per guidelines of the Reserve Bank of India (RBI), a period of 30 days is allowed for payment of due amount, thereafter the amount is declared as overdues. The term overdue means the difference between total demand for the period and the collection. In respect of term loans, the banks are required to refund the overdues separately for interest and principal in order to examine whether a particular loan falls under the category of NPAs. There are 26 public sector banks in India. Of these, 19 are nationalized banks, 6 belong to SBI and its associate group and one bank (IDBI Bank) is another PSBs. In Pvt. SBs, majority of the share capital are possessed by the private individual. There are 28 Pvt. SBs in India. Of these, 15 banks are old private sector banks (OPSBs) and 13 banks belong to new private sector banks (NPSBs).