Issue Details

A COMPARATIVE STUDY BETWEEN PRIVATE AND PUBLIC SECTOR BANK NON PERFORMING ASSETS WITH SPECIAL REFERENCE TO KARNATAKA STATE

ABSTRACT

The banking sector plays a pivotal role in the economic development of India, with non-performing assets (NPAs) being a significant challenge faced by both public and private sector banks. This comparative study aims to analyze the NPA situation in both private and public sector banks with a specific focus on Karnataka state. The study examines the causes, trends, and impact of NPAs on the financial stability and profitability of these banks. By assessing the differences in asset quality, loan recovery processes, and risk management strategies, the research highlights the performance disparities between the two sectors. Data is collected from annual reports, secondary sources, and financial statements of select banks in Karnataka for a period spanning the last five years. The findings reveal that public sector banks tend to have higher levels of NPAs compared to private sector banks due to factors like political influence, slower decision-making processes, and inadequate risk management frameworks.

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