Asset quality is the indicator for the health of the banking industry in a country. With the introduction of international norms of Income Recognition, Asset classification and Provisioning in the banking sector, managing Non-Performing Assets have emerged as one of the major challenges facing the banks. This study provides an analysis of the trends of NPAs of Public and Private Sector Banks in India and found that the NPAs of both the groups have been increasing regularly year by year but the magnitude of Non-Performing Asset is comparatively higher in public sectors banks than private sector banks. Further it analysed the asset quality in terms of Gross Non-Performing Asset & Net Non-Performing Asset to Total Assets ratios, Slippage & Net Slippage ratios, Restructured Standard Asset ratio, Stressed Asset and Impaired Asset ratios besides Gross Non-Performing Asset and Net Non-Performing Asset ratios based on the secondary data. Analysis of variance (ANOVA) and F-test are used with the help of Statistical Package for the Social Sciences to ascertain the significant difference in various parameters of Net-Performing Asset between Public Sector Banks and Private Sector Banks. It was observed that there is significant difference in between Public Sector Banks and Private Sector
Non Performing Assets, Slippage Ratio, Restructured Asset Ratio, Stressed Asset Ratio, Impaired Asset Ratio
