The best measure of the soundness of the banking industry is its amount of Non-performing assets (NPAs) in a Bank. Parameters related to Non-Performing Assets shows the efficiency of Banks to run their Business. NPA has a direct impact on the profitability which affects the performance of the Banks. Higher NPA indicates inefficiency of the bank and lower NPA indicate better performance and management of funds. The bank needs to reduce their NPA to improve efficiency and profitability. In this paper, Author tries to associate profitability and NPA. This paper deals with the impact of Gross NPA on the Profitability of the Selected Public and Private Sector Banks. The two Public Sector Banks viz. State Bank of India and Punjab National Bank and two private sector banks which have been selected are ICICI Bank and HDFC Bank for the study. The Banks are selected on the basis of the amount of Gross Advances.
