Casual Analysis and Interpretation of the Trend of NPA Levels and Profitability: A Study on Top 5 Public Sector and 5 Private Sector Banks in India

Because the banking sector plays such an important part in the Indian economy, the study titled " Casual Analysis and Interpretation of the trend of NPA levels and profitability: A study on Top 5 Public Sector and 5 Private sector Banks in India" examines the non- performing assets (NPA) level in the Indian banking business. Bank asset quality must be measured and maintained in order for the banking sector to develop. Nowadays, asset quality in banks, particularly in Public Sector Banks, is constantly deteriorating, putting the banking sector, regulators, and the Indian economy under undue strain. The purpose of this research is to determine the extent of NPA and how they affect bank profitability. From April 2017 to March 2020, the study looked at gross, net NPA, mean net NPA, and mean net profit of public and private sector banks. Introduction, Review of Literature, Statement of the Problem, Study Objectives, Theoretical Framework, Methodology, Analysis & Interpretation, Conclusion, and Recommendations were all covered in the study. For better results, the study relied solely on secondary data and employed mean and Pearson correlation data approaches. According to the research findings in comparison to private sector banks, public sector banks are less competent at overseeing and monitoring their nonperforming assets. As a result, this study advises regulators and bank officials to take the required actions to reduce NPAs and improve recovery mechanisms.