Comparative analysis of non-performing assets (npas) inpublic sector and private sector banks

Banks are important part of the economy and they play a crucial role by providing various financial services to the public including accepting deposits from public and providing funds in the form of loansto the different sectors like Agriculture, Industry and Services. The main source of income to the banks is interest on loans lent by the banks.The performance of the banks depends on how they recover principal and interest ofthe given loans from their customers. If they fail to recover principal and interest of sanctioned loansthey become Non Performing Assets (NPAs). High NPAs result in poor performance of the banks, high rate of interest, losing confidence of the investors in providing not only good return but also invested amount, poor services to the customers, mergers and acquisitions in banking sector unemployment, etc. Non-Performing Assets (NPAs) not only occur in public sector banks but also in other banks like Private Sector Banks and Foreign Banks. This paper throws light on brief picture about Gross Advances, Net Advances and Non-Performing Assets (NPAs) in Public Sector and Private Sector Banks in India from 2013-14 to 2017-18.