ANALYZING THE TRENDS AND IMPLICATIONS OF GROSS AND NET NPAS IN SCHEDULED COMMERCIAL BANKS AND PUBLIC SECTOR BANKS: A COMPARATIVE STUDY (2017-2022)
Keywords:
Non-Performing Assets, Public Sector Banks, Scheduled Commercial Banks, NPA Management, Insolvency and Bankruptcy Code (IBC)Abstract
This study investigates the trends and management of Gross and Net Non-Performing Assets (NPAs) in Scheduled Commercial Banks (SCBs) and Public Sector Banks (PSBs) in India from 2017 to 2022. NPAs have posed significant challenges to the financial health of Indian banks, particularly PSBs. Using secondary data, the study analyzes the effectiveness of regulatory measures and bank interventions to reduce NPAs. Statistical methods, including descriptive analysis, t-tests, and repeated measures ANOVA, were employed to evaluate changes over time and compare the performance between SCBs and PSBs. The results reveal a substantial reduction in both Gross and Net NPAs, with PSBs experiencing higher NPA levels compared to SCBs throughout the period. The findings also highlight the significant impact of regulatory measures such as the Insolvency and Bankruptcy Code (IBC) and recapitalization schemes in improving NPA management. However, the persistent NPA challenges faced by PSBs indicate the need for further reforms, particularly in credit risk management and recovery mechanisms. The study suggests that adopting advanced data analytics, strengthening governance, and enhancing recovery processes will be essential for sustaining these improvements. These insights provide valuable recommendations for policymakers and banking institutions to continue efforts toward improving asset quality and financial stability.
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