Comparative Analysis of Net NPA’s to Net Profit Ratio of Public and Private Sector Banks in India”

Comparative Analysis of Net NPA's to Net Profit Ratio of Public and Private Sector Banks in India

Ms.D.Sreevani1, Student of Department of Management Studies. Madanapalle Institute of Technology & Science. Madanapalle

Mr. Venkata Rao Valluri 2, Assistant Professor

Department of Management Studies. Madanapalle Institute of Technology & Science. Madanapalle

Abstract:

This study examines the Net NPA to Net Profit ratio of India's public and private sector banks from 2020 to 2024. The study aims to compare the performance of public and private sector banks and identify the factors influencing their Net NPA's to Net Profit ratio. The results show significant differences in the net NPAs to net profit ratio between public and private sector banks. Private sector banks have a higher Net NPA to Net Profit ratio compared to public sector banks. The study also identifies economic factors such as GDP growth rate, inflation rate, and interest rate as significant influencers of the Net NPA's to Net Profit ratio. The findings of this study have implications for bank management, policymakers, and researchers. The study suggests that banks should focus on improving asset quality, enhancing risk management practices, and diversifying revenue streams to improve their Net NPA to Net Profit ratio.

Keywords: Net NPA's to Net Profit ratio, public sector banks, private sector banks, India, banking performance.