Comparative Analysis of NPAs and Credit Deployment of Scheduled commercial Banks of India

In India, the banks are being segregated in different groups. Each group has their own benefits, own dedicated target markets, limitations in operating in India. Generally the public sector banks are blamed for higher NPAs in their books. Also the priority sector lending is generally the pain area of banks as they constitute a large part of stressed assets of a bank's balance sheets. The study analysis the advances and NPAs of all public and private banks in priority sector, non-priority sectors and bank group wise. The gap between public and private banks in terms of advances and NPAs means which one has higher or lower for past last years are answerable. We could find out correlation between NPAs and priority sector lending of banks in India.

Research has been done on bank group wise and sector wise data has been gathered mainly from RBI website and then analyze that at different parameters.

Findings of research indicate that although NPAs of public sector banks are higher than those of private sector banks, yet both of the bank groups have shown a declining tendency. NPAs are not restricted to priority sector only and non-priority advances are also having a high degree of correlation with NPAs