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An Analytical Study of NPAs in Public Sector Banks in India


  • Manish Bhaskarbhai Raval

    () (Assistant Professor, Lt. Shree M. J. Kundaliya English Medium Mahila Commerce College, Kasturba Road, Rajkot, Gujrat.)


When the funds lent by the bank become doubtful or irrecoverable, it is termed as non-performing assets (NPAs). Banks are required to make provisions for such NPAs. RBI has issued guidelines for the provision for NPAs. According to RBI guidelines assets are classified as standard assets, sub-standard assets, doubtful assets and loss assets. The per cent provision of 0.40 per cent, 10 per cent, 100 per cent and 100 per cent respectively are required to be made by the banks. The presented article attempts to find out the position of Gross NPAs and Net NPAs in public sector banks in India. Applying the test of hypothesis using the F-test, it is found that Gross NPAs to Total Assets Ratio shows decreasing trend. The article attempts to find out the ratio Gross NPAs and Net NPAs to Total Assets and Advances. This ratio shows fluctuating trend in all the public sector banks.

Suggested Citation

  • Manish Bhaskarbhai Raval, 2012. "An Analytical Study of NPAs in Public Sector Banks in India," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 7(1), pages 5-12, April.
  • Handle: RePEc:jct:journl:v:7:y:2012:i:1:p:5-12

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    More about this item


    NPAs; Trend Analysis;

    JEL classification:

    • E53 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Deposit Insurance
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies


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